Any movement along an existing production possibilities curve will
A)increase the production of one good while decreasing the production of the other.
B)increase the production of both goods.
C)increase efficiency.
D)increase employment.

Question

Any movement along an existing production possibilities curve will
A)​increase the production of one good while decreasing the production of the other.
B)​increase the production of both goods.
C)​increase efficiency.
D)​increase employment.

Quizplus · Accepted Answer

Any movement along an existing production possibilities curve requires reallocating resources from one good to another. This means that there is a trade-off involved, and producing more of one good requires producing less of the other. Therefore, the production of one good will increase while that of the other decreases.

Any Movement Along an Existing Production Possibilities Curve Will