Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?

Question

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1
 
-Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true?

Quizplus · Accepted Answer

A production point outside the curve represents a level of output that is currently unattainable with the existing resources and technology. Shifting resources between defense and non-defense goods does not create new resources or technology; it merely reallocates what is already available, and thus cannot achieve a point outside the current production possibilities curve.

Following Is the Production Possibilities Schedule for an Economy Producing