Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes. A movement along the production possibilities boundary could be caused by
A)an increase in the labour supply.
B)the employment of previously idle resources.
C)the reallocation of resources between military and civilian goods.
D)technological progress.
E)the growth of productive capacity.

Question

Quizplus · Accepted Answer

A movement along the production possibilities boundary can occur due to the reallocation of resources between military and civilian goods. This means that more resources are being shifted towards the production of one type of good and away from the other, resulting in a different quantity of each. The other options listed (A, B, D, E) could all potentially shift the production possibilities boundary outward, allowing for more of both types of goods to be produced, but they would not cause a movement along the boundary itself.

Consider a Production Possibilities Boundary Showing the Quantity of Military