-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) incur an opportunity cost of having to give up some butter in order to make the additional amount of guns desired.
B) be able to make the desired switch only if there is a significant improvement in the technology available to the nation.
C) have to employ all currently unemployed resources to accomplish this.
D) find this change impossible to achieve given the resources it currently possesses.

Question

-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) incur an opportunity cost of having to give up some butter in order to make the additional amount of guns desired. 
B) be able to make the desired switch only if there is a significant improvement in the technology available to the nation. 
C) have to employ all currently unemployed resources to accomplish this. 
D) find this change impossible to achieve given the resources it currently possesses.

Quizplus · Accepted Answer

Moving from position A to position B on the production possibilities frontier involves reallocating resources, which incurs an opportunity cost, such as giving up some butter to produce more guns.

-The Country Whose Production Possibilities Frontier Is Illustrated Above Is