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The Government of Canada Promises to Produce More Defence Goods

Question 89

Multiple Choice

The Government of Canada promises to produce more defence goods without any decrease in the production of other goods.This promise is valid


A) if Canada is producing at a point outside its PPF.
B) if Canada is producing at a point on its PPF.
C) if Canada is producing at a point inside its PPF.
D) only if the PPF shifts rightward.
E) only if technology advances or capital increases.

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