Question

The country of Lauronia is currently at full production of sweatshirts and applesauce. What would it look like on the production possibilities frontier if production of one of those products dropped while the production level of the other product stayed the same?

Answer 1

Answer:

C) The point would move from the curve to the inside of the curve.

Explanation:

Since only one product's production decreases, the curve will not shift entirely. Instead, total production will be located in a point inside the curve.

It is shown as point C in the attached graph.

The other product's total possible production should remain the same, so the curve should change by shifting only one output value on either X or the Y axis.