If Sam is producing at a point on his production possibilities frontier, then he
A) will be unable to gain from trade.
B) cannot produce any more of either good.
C) is not subject to scarcity.
D) can produce more of one good only by producing less of the other.

Question

Quizplus · Accepted Answer

If Sam is producing at a point on his production possibilities frontier, it means he is efficiently allocating his resources between producing two goods. In order to produce more of one good, he must produce less of the other, as there are limited resources available. Therefore, choice D is the correct answer. Choices A, B, and C are incorrect as they do not necessarily apply to a situation where someone is producing at a point on their production possibilities frontier.

If Sam Is Producing at a Point on His Production