Suppose That an Economy Produces Civilian Goods and Military Goods

question 2

Multiple Choice

Suppose that an economy produces civilian goods and military goods.If technological breakthroughs increase its ability to produce military goods,then

• A) fewer military goods will be produced
• B) more civilian goods will be produced
• C) the opportunity cost of producing military goods will rise
• D) there will be productive inefficiency in the economy
• E) the production possibilities frontier will pivot outward around the axis for military goods