The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must
A)also increase its production of nonmilitary goods.
B)reduce its output of nonmilitary goods.
C)suffer inflation.
D)suffer unemployment.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the trade-offs in production volume between two choices. If a nation at full employment wants to increase production of military goods, it must reduce its output of nonmilitary goods due to limited resources.

The Production Possibilities Curve Tells Us That If Full Employment