-If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point
A) within its PPF.
B) on its PPF.
C) beyond its PPF.
D) None of the above is correct because increasing the production of one good without decreasing the production of another good is impossible.

Question

-If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point
A) within its PPF. 
B) on its PPF. 
C) beyond its PPF. 
D) None of the above is correct because increasing the production of one good without decreasing the production of another good is impossible.

Quizplus · Accepted Answer

The United States must have been producing at a point within its Production Possibility Frontier (PPF), as increasing production of one good without decreasing another indicates that not all resources were being used efficiently, hence not on the frontier.

-If the United States Can Increase Its Production of Automobiles