Ceteris paribus,if a society is producing at a point on the production possibilities frontier (PPF),it can only increase the production of one good by
A) also increasing the production of the second good.
B) decreasing the production of the second good.
C) increasing the price of the second good.
D) decreasing the price of the second good.
E) reducing the resources available for production.

Question

Quizplus · Accepted Answer

If a society is producing at a point on the PPF, it means all resources are fully utilized, and to increase the production of one good, the resources have to be taken away from the production of the other good. Therefore, the only way to increase the production of one good is by decreasing the production of the other good.

Ceteris Paribus,if a Society Is Producing at a Point on the Production