Consider a Production Possibilities Boundary Showing the Possible Combinations of Military

question 38

Multiple Choice

Consider a production possibilities boundary showing the possible combinations of military goods and civilian goods that a country can produce. Suppose that the country is currently at a point on the boundary. If the production of military goods is increased, the production of civilian goods will necessarily

• A)remain the same.
• B)decrease.
• C)increase.
• D)increase at a decreasing rate.
• E)increase at a increasing rate.

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Definitions:

ATC Curve

Refers to the Average Total Cost curve in economics, which depicts how the total costs per unit of output change as the level of production is altered.

MC

The additional cost incurred by producing one more unit of a product or service, commonly known as marginal cost.

ATC

Stands for Air Traffic Control, a service provided to direct aircraft safely in the sky and on the ground.

Output Q3

A specific reference to the quantity of goods or services produced in the third quarter of a financial or calendar year.