The country whose production possibilities frontier is illustrated above is currently at position A on the production possibilities frontier. If it wishes to move to position B, it will
A) be able to make the desired switch only if there is a significant improvement in the technology available to the nation.
B) have to employ all currently unemployed resources to accomplish this.
C) find this change impossible to achieve given the resources it currently possesses.
D) incur an opportunity cost of having to give up some butter in order to make the additional amount of guns desired.

Question

Quizplus · Accepted Answer

Moving from point A to point B means producing more guns and less butter. This entails giving up some of the resources used to produce butter, and diverting them towards gun production. Therefore, the country will have to incur an opportunity cost and give up some butter production in order to produce more guns.

The Country Whose Production Possibilities Frontier Is Illustrated Above Is