Phillip H. answered • 09/28/19
7 years of teaching AP Macro & Micro and 13 teaching Social Studies
This is a tricky question because A and B are both correct. If I had to only chose one option I would choose A because labor is a resource used in the product process and if you have more labor you should have the possibility of producing more products. Choice B is also a good choice, because most assumptions would say that better technology would mean you could produce more products with the new technology. However it is possible that better technology just means you can make better quality products not greater quantity of products. Choice C is definitely not true, because trade doesn't change you production possibilities it only changes your consumption possibilities. Choice D is definitely not true as C is not true.
