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If the United States decided to convert its automobile factories to tank product

ID: 1251226 • Letter: I

Question

If the United States decided to convert its automobile factories to tank production as it did in World War II, but found that some auto making facilities contributed very little to tank production while other facilities were more productive, then: The production-possibilities curve between tanks and automobiles would appear as a straight line. The production-possibilities curve between tanks and automobiles would shift outward. Decreasing opportunity costs would characterize greater automobile production. There would be increasing opportunity costs in the production of additional tanks.

Explanation / Answer

answer

D. THERE WOULD BE INCREASING OPPORTUNITY COST IN THE PRODUCTION OF ADDITIONAL TANKS

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