Consider a production possibilities boundary showing the possible combinations of military goods and civilian goods that a country can produce.Suppose that the country is currently at a point on the boundary.If the production of military goods is increased,the production of civilian goods will necessarily
A)decrease.
B)remain the same.
C)increase.
D)increase at a decreasing rate.
E)increase at a increasing rate.

Question

Quizplus · Accepted Answer

The production possibilities boundary indicates that there is a trade-off between producing military and civilian goods. If the country chooses to produce more military goods, it must give up some production of civilian goods. Therefore, if the production of military goods is increased, the production of civilian goods must necessarily decrease, keeping the country on the production possibilities boundary.

Consider a Production Possibilities Boundary Showing the Possible Combinations of Military