Asked by
Kylie Boles
on Oct 13, 2024Verified
The production possibilities curve tells us that if full employment exists and a nation wishes to permanently increase its production of military goods,it must
A) also increase its production of nonmilitary goods.
B) reduce its output of nonmilitary goods.
C) suffer inflation.
D) suffer unemployment.
Production Possibilities Curve
A graphical depiction showing the maximum number of goods and services that can be efficiently produced by an economy given its resources and technology.
Military Goods
Products and services produced specifically for military purposes.
Nonmilitary Goods
Products and services designed for civilian use and not intended for defense or warfare purposes, encompassing a wide range of consumer and capital goods.
- Explain the rationale behind allocating resources between military and civilian goods in terms of production possibilities.
Verified Answer
CP
Learning Objectives
- Explain the rationale behind allocating resources between military and civilian goods in terms of production possibilities.