Given a production possibilities curve for defense goods and nondefense goods, if a nation is producing at a point inside the production possibilities curve, then: *
2 points
a. too many resources are being used for nondefense goods.
b. too many resources are being used for defense goods.
c. only new technology will increase the production of defense or nondefense goods.
d. it is possible to increase either good’s production without sacrificing production of the other.