A movement from one point to another along the production possibilities curve would imply that
A) the labor force available to society has grown.
B) productivity has increased over time.
C) productivity has declined over time.
D) society is producing a different combination of outputs.

Question

Quizplus · Accepted Answer

Movement from one point to another along the production possibilities curve represents a change in the quantity of one good produced in exchange for the quantity of the other good. Therefore, society is producing a different combination of outputs. Choice (A) is incorrect because the change in the labor force does not cause movement along the production possibilities curve; it only shifts the curve. Choice (B) and (C) are incorrect because they are related to changes in productivity, but they do not necessarily cause movement along the production possibilities curve.

A Movement from One Point to Another Along the Production