As resources are shifted from one industry to another this can be shown by ?
Correct answer: B. A movement along the production possibility frontier
- A. An inward shift of the production possibility frontier
- B. A movement along the production possibility frontier
- C. An outward shift of the production possibility frontier
- D. The pivoting of the production possibility frontier
Explanation
When existing resources are reallocated between industries, the economy moves from one point to another along the same production possibility frontier. A shift of the frontier would instead indicate a change in resources or technology.
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