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Given a Production Possibilities Curve for Defense Goods and Nondefense

Question 8

Multiple Choice

Given a production possibilities curve for defense goods and nondefense goods, if a nation is producing at a point inside the production possibilities curve, then


A) too many resources are being used for nondefense goods.
B) only new technology will increase the production of defense or nondefense goods.
C) too many resources are being used for defense goods.
D) society is maximizing output from the limited number of resources.
E) it is possible to increase defense goods production without sacrificing nondefense goods production.

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