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

Question

Quizplus · Accepted Answer

A movement along the production possibilities curve can only occur when there is a change in the quantity of one output, as a result of producing less or more of another output. This implies that society has chosen a different combination of goods and services, but there has been no change in the labor force or productivity. Option A and B would lead to a shift in the production possibilities curve, while option D implies a decrease in productivity.

A Movement Along the Production Possibilities Curve Would Imply That