A country produces cars and books.All of its resources are currently being employed in the production of these two goods.If this country increases the production of cars,what will happen with the quantity produced of books?
A) The quantity of books produced will not change.
B) The quantity of books produced will decrease.
C) The quantity of books produced will slightly increase.
D) The quantity of books produced will substantially increase .

Question

Quizplus · Accepted Answer

If the country increases the production of cars, it will have to reallocate resources (labor, capital, etc.) from the production of books to the production of cars. Therefore, the quantity of books produced will decrease.

A Country Produces Cars and Books