Moving from one point to another on a production possibilities frontier implies
A) increasing the production of both goods.
B) decreasing the production of both goods.
C) increasing the production of one good and decreasing the production of another.
D) holding the production levels of both goods constant.
E) changing the amount of factors of production that are employed.

Question

Quizplus · Accepted Answer

Moving from one point to another on a production possibilities frontier implies increasing the production of one good and decreasing the production of another. This is because resources are scarce and limited, so increasing the production of one good means using more resources, which necessarily decreases the resources available for producing another good.

Moving from One Point to Another on a Production Possibilities