When a nation is producing on its production possibilities frontier,if more resources are used to produce one good,then the production of other goods
A) must increase.
B) must decrease.
C) must remain the same.
D) must change but they might increase or decrease.
E) might increase if the nation can produce more efficiently.

Question

Quizplus · Accepted Answer

When a nation is producing on its production possibilities frontier, it means that it is already producing the maximum combination of goods that it can produce with its available resources. Therefore, if more resources are used to produce one good, the production of other goods must decrease in order to remain on the production possibilities frontier. This is because the additional resources used for the production of one good are no longer available for the production of other goods, causing a trade-off between the two.

When a Nation Is Producing on Its Production Possibilities Frontier,if