Ceteris paribus,if North Korea increases the size of its military,then:
A) Its production possibilities curve will shift outward.
B) Its production possibilities curve will shift inward.
C) Its production of consumer goods will increase.
D) Its production of consumer goods will decrease.

Question

Quizplus · Accepted Answer

Increasing the size of its military means North Korea is allocating more resources to defense rather than to the production of consumer goods. This reallocation of resources results in a decrease in the production of consumer goods.

Ceteris Paribus,if North Korea Increases the Size of Its Military,then