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.

 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 pr

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