Scaling back the US 'war on terror' would:
a. shift US production from defense goods to civilian goods.
b. shift US production from 'civilian' goods to defense goods.
c. shift the production possibilities curve inward.
d. suggest that the United States is allocating less than the optimal.
Production Possibilities Frontier:
A country's production possibilities frontier, PPF, shows the relationship between types of goods and services a country can produce. Often the model used is "guns vs. butter," showing that a country can produce defense goods or civilian goods. The PPF shows how many of each good can be produced and any combination of both. Any point beyond the PPF is impossible until more land, labor, capital or productivity is acquired.
Answer and Explanation: 1
Scaling back the US 'war on terror' would: a. shift US production from defense goods to civilian goods.
Scaling back any war will shift a country's...
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fromChapter 1 / Lesson 4
The production possibility model illustrates scarcity and efficiency. Explore how opportunity costs affect the production possibility curve and discover why it is bowed outward on a graph.