Suppose That a Nation Can Only Make Two Products: Defense

Multiple Choice

Suppose that a nation can only make two products: defense goods and civilian goods. In a graph of the marginal benefit (MB) and marginal cost (MC) of defense goods, a leftward shift of the MB curve will cause the optimal quantity of

A) civilian goods to decrease.
B) both civilian goods and defense goods to decrease.
C) defense goods to decrease.
D) defense goods to increase.