A movement from point J to point M would represent
A)an increase in consumer goods,but not capital goods.
B)an increase in capital goods,but not consumer goods.
C)an increase in both capital goods and consumer goods.
D)no increase in either capital goods or consumer goods.

Question

Quizplus · Accepted Answer

A movement from point J to point M on a production possibilities curve implies that an economy has decided to produce more capital goods at the cost of producing fewer consumer goods. Therefore, there is an increase in capital goods, but not consumer goods. Option A is incorrect because it implies an increase in both capital and consumer goods. Option C is incorrect because it implies an increase in both goods, which is not the case. Option D is incorrect because it implies no increase in any goods, which is not true for a movement from point J to point M.

A Movement from Point J to Point M Would Represent