When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A)must change but they might increase or decrease.
B)must decrease.
C)must remain the same.
D)must increase.
E)might increase if the nation can produce more efficiently.

Question

Quizplus · Accepted Answer

When a nation is producing on its production possibilities frontier, it is operating at maximum efficiency. Therefore, reallocating resources to produce more of one good will result in the production of less of another good, as resources are limited.

When a Nation Is Producing on Its Production Possibilities Frontier