Question

Moving from one point to another on a production possibilities frontier implies A. increasing the production of both goods. B. decreasing the production of both goods. C. increasing the production of one good and decreasing the production of another. D. holding the production levels of both goods constant.

Answer 1

Answer:

C

Explanation:

The production possibilities curve illustrate the tradeoff facing an economy producing two goods. The production possibilities frontier shows all the possible combinations of the two products using all the available resources.

If all the available resources are being used, increasing the production of one of the goods means decreasing the production of the other good.

All points in or inside the frontier are attainable.