For this economy to produce 5 million units of consumer goods and 3 million units of defense goods

Question

Quizplus · Accepted Answer

The only way to produce both 5 million units of consumer goods and 3 million units of defense goods is if the production possibilities curve (PPC) is pushed outward. This would mean that the economy has increased its capacity to produce both types of goods, either through technological advancements, an increase in resources, or both. If resources were used inefficiently, unemployment would likely increase and production of both types of goods would decrease. Income inequality and shrinking resources are not directly related to the production of goods.

For This Economy to Produce 5 Million Units of Consumer