In a market operating along the production possibilities curve, which of the following is inevitable if the production of one of the goods is increased?

Question

Quizplus · Accepted Answer

If the production of one of the goods is increased, resources must be shifted away from the production of other goods. This means less of other goods must be produced so that the production possibilities curve remains unchanged. Therefore, D is the correct answer. Inefficiency, labor shortage or unemployed resources are not inevitable consequences of an increase in production of one good; these would depend on other factors in the market.

In a Market Operating Along the Production Possibilities Curve, Which