A movement along the production possibilities curve would imply that:
A) the labor force has grown.
B) productivity has increased.
C) productivity has declined.
D) society has chosen a different set of outputs.

Question

Quizplus · Accepted Answer

A movement along the production possibilities curve implies a change in the production quantity of one good, while the production quantity of another remains constant. This movement could be due to a change in consumer preferences, changes in resource availability or changes in technology. It does not relate to any factor such as labor force or productivity in particular. The only possible reason for such a movement on the curve is that society has chosen a different set of outputs, hence the answer is D.

A Movement Along the Production Possibilities Curve Would Imply That