Being on the production-possibility frontier between guns and butter means that:
A)it is impossible to produce any more guns.
B)it is impossible to produce any more butter.
C)more guns can be produced only by doing without some butter.
D)population is in equilibrium.
E)if society becomes more productive in producing butter, then we can have more butter but not more guns.

Question

Quizplus · Accepted Answer

Being on the production-possibility frontier means that society is efficiently allocating its resources between the production of guns and butter. However, since resources are scarce, producing more guns would require giving up some butter production, and producing more butter would require giving up some gun production. So, the only way to produce more guns while staying on the PPF is to produce them at the expense of some butter. Therefore, C is the best choice.

Being on the Production-Possibility Frontier Between Guns and Butter Means