The United States could expand output of both civilian and military goods during the period from 1939 through the early part of World War II because
A) output per worker fell as more men were drafted by the military.
B) it captured large amounts of new resources from enemy territory.
C) military goods are produced using different resources than consumer goods.
D) during the 1930s it was operating well inside its production possibilities curve.
E) its production possibilities curve was bowed out during World War II.

Question

Quizplus · Accepted Answer

During the 1930s, the United States was in the midst of the Great Depression, which meant that many resources, especially labor, were underutilized. When World War II began, the mobilization for war allowed these idle resources to be employed, thus expanding output without initially having to sacrifice the production of civilian goods. This indicates that the U.S. was operating inside its production possibilities curve, which represents the maximum output that an economy can produce with its available resources and technology.

The United States Could Expand Output of Both Civilian and Military