A country that must decrease production of one good in order to increase the production of another
A) must have private ownership of property.
B) must be producing on its production possibilities frontier.
C) must be using resources inefficiently.
D) must be producing beyond its production possibilities frontier.

Question

Quizplus · Accepted Answer

This scenario describes a country that is currently not producing at its maximum potential and therefore has room to reallocate its resources towards the production of a different good. This means that the country is operating on its production possibilities frontier, but not yet at its maximum point of efficiency.

A Country That Must Decrease Production of One Good in Order