A movement along a production possibilities curve will lead to an increase in social well-being,as long as

Question

Quizplus · Accepted Answer

The condition for social well-being to increase when there is a movement along the production possibilities curve is that the marginal social benefit (MSB) of the move should be greater than the marginal social cost (MSC). This implies that the additional benefit to society from producing more of one good and less of the other should be greater than the additional cost of doing so. Therefore, choice B is the correct answer. A is not sufficient, as having enough labor and capital does not ensure social well-being. C and D are incorrect, as the MSB must be greater than the MSC for social well-being to increase. E is too strong a condition, as some individuals may be worse off while others are better off, but overall social well-being may still increase.

A Movement Along a Production Possibilities Curve Will Lead to an Increase