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Question

The concept of trade-off is shown by:

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A
Point N to A
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B
Point A to N
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C
Point B to N
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D
Point A to B
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Solution

The correct option is D Point A to B
The concept of trade off refers to shift from production of one commodity to production of some other commodity where to produce the other commodity, the production of the former commodity is reduced owing to limited resources and technology. So a shift from point A to point B indicates that production of guns are reduced to increase the production of bullets.

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