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Orchardland produces apples and oranges, at a combination on its production possibilities frontier (shown above). If the people decide to produce more apples:

A. Orchardland will have more apples and the same number of oranges.
B. Orchardland will have more apples and fewer oranges.
C. Too bad for Orchardland. It cannot produce more apples.
D. It's impossible to determine the outcome from the information provided.

User Davis King
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Choosing to produce more apples on Orchardland's Production Possibilities Frontier involves a trade-off, leading to more apples and fewer oranges. This decision reflects the fundamental economic concept of opportunity cost. Here option B is correct.

The Production Possibilities Frontier (PPF) represents the maximum combination of two goods that a country can produce given its level of technology and inputs. If Orchardland decides to produce more apples, it would need to reallocate resources from orange production to apple production.

Since the PPF illustrates the trade-off between apples and oranges, moving towards producing more apples implies a movement along the PPF. In such a scenario, the outcome would be a trade-off between apples and oranges, meaning Orchardland will have more apples and fewer oranges.

This conclusion is based on the fundamental economic concept of opportunity cost, which states that to increase the production of one good, resources must be shifted away from the production of another. The PPF visually represents this trade-off in the context of Orchardland's apple and orange production. Here option B is correct.

User Chris Arndt
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