-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B, it will A) have to find additional workers, because the country already is operating on its production possibilities frontier. B) be unable to do so until additional technological progress is made. C) have to sacrifice C₁ - C₂ clothing in order to free the resources necessary to produce the additional food. D) require that all the unemployed resources in the country be put to work.

Question

Quizplus · Accepted Answer

The correct answer is C because moving from point A to point B on a production possibilities frontier (PPF) implies reallocating resources from one good to another. In this case, to increase food production, the country must reduce clothing production, as both goods compete for the same resources. This is a direct application of the concept of opportunity cost.

-The Figure Above Illustrates That If This Country Wishes to Have