If You Move from a Point Inside the Production Possibility

question 58

Multiple Choice

If you move from a point inside the production possibility curve to a point on the production possibility curve, it follows that efficiency is:

• A) increased because the economy is now on the production possibility curve.
• B) increased only if production of both goods increases.
• C) increased as long as the combined output of both goods increases.
• D) reduced if less of one good is produced.