If a movement along the production possibilities curve yields greater benefits to society than costs,the movement will increase social well-being.

Question

Quizplus · Accepted Answer

This statement is true. When a movement along the production possibilities curve (PPC) results in producing more of one good or service, there is an opportunity cost—the production of the other good or service that must be foregone. However, if the benefits of producing the additional quantity of the good or service that was chosen outweigh the costs of the foregone good or service, then society's overall well-being will increase. This is because society is getting more value (utility) from the additional output than it is giving up from the foregone output.

If a Movement Along the Production Possibilities Curve Yields Greater