We temporarily operated outside the production possibilities frontier for at least two years in which one of the following decades?
A)The 1930s
B)The 1940s
C)The 1970s
D)The 1980s

Question

Quizplus · Accepted Answer

The US operated outside its production possibilities frontier in the 1940s due to the demands of World War II. The government had to increase military production, leading to a decrease in consumer goods production. This meant that the economy had to operate outside its PPF to meet wartime demands.

We Temporarily Operated Outside the Production Possibilities Frontier for at Least