A President of the United States promises to simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?
A) if the U.S. were producing at a point on its production possibilities curve
B) if the U.S. were producing inside its production possibilities curve
C) if the U.S. were producing to the right of its production possibilities curve
D) none of the above; the production possibilities curve must shift to the right
B) if the U.S. were producing inside its production possibilities curve
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What will be an ideal response?
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