-A movement from point B to point C along the production possibilities frontier in Figure 1.1 suggests:
A) an additional films can be produced only if more and more food is given up.
B) the trade-off between food and films is not constant.
C) society cannot have more of both goods at the same time.
D) all of the above.

Question

-A movement from point B to point C along the production possibilities frontier in Figure 1.1 suggests:
A) an additional films can be produced only if more and more food is given up. 
B) the trade-off between food and films is not constant. 
C) society cannot have more of both goods at the same time. 
D) all of the above.

Quizplus · Accepted Answer

Moving along the production possibilities frontier (PPF) indicates that to produce more of one good (films, in this case), society must give up some of another good (food). This movement also shows that the trade-off between the two goods is not constant, as the shape of the PPF typically reflects increasing opportunity costs. Lastly, it highlights that society faces trade-offs and cannot have more of both goods simultaneously without advancements in technology or resources, which would shift the PPF outward.

-A Movement from Point B to Point C Along the Production