Answer to Question #241908 in Economics of Enterprise for chris

Question

The leader of a federal political party made the following campaign promise: "My administration will increase spending on mask production by cutting spending on national defence." The promise can be kept if: (select all that apply)

Select all that apply:

a.

the economy moves along the production possibilities curve in the direction of more masks.

b.

the economy moves along the production possibilities curve in the direction of a lesser quantity of defence.

c.

the economy moves from a point inside the production possibilities curve toward a point outside the production possibilities curve.

d.

taxes are raised.

Answer 1

Answer is both a and b

a.

the economy moves along the production possibilities curve in the direction of more masks.

b.

the economy moves along the production possibilities curve in the direction of a lesser quantity of defence.