An economy produces tshirts and tank tops If consumers sudde
An economy produces t-shirts and tank tops. If consumers suddenly decide that they prefer tank tops to t-shirts, then: the point that the economy chooses to produce would move along the production possibiltities frontier. 0 the economy would move production to a point on the interior of the production possibilities frontier. O the economy would move production to a point on the exterior of the production possibilities frontier.
Solution
Ans is A
Until or Unless there is inefficient use of resources economy will always produce at PPF.
In above case an economy prefers tank tops over t shirt then production point will shift toward more of tank tops.
Thus there will be movement along the ppf.
