Question

The economy is currently at a point on its production possibilities frontier (PPF) for civilian goods and military goods. A presidential candidate says that it is possible to get more of everything--more civilian goods and more military goods--simultaneously. The candidate is

Answer 1

The candidate has given a FALSE statement.

Step-by-step explanation:

Production Possibility Frontier is graph representing product combinations, that an economy can produce given resources & technology.

PPF points are based on an assumption that resources & technology are fully efficiently utilised. So, quantity of one good can be increased by reducing quantity of other good - given same resources & technology and hence the inverse (negative) relationship between goods make PPF downward sloping.

Therefore, given negatively sloping PPF & economy at a point on PPF : Production of either good 'Civilian goods' or 'military goods' can be increased by reducing the production of the other good. Given same resources & technology & production on PPF , production of two goods can't be increased simultaneously.