2. This multiple-choice question is worth 2 points.

Ceteris paribus (c.p.), or all other things equal, assume that North Korea makes only two goods, weapons and food.

Currently, it is producing mostly food and very few weapons. Call this point A.

If it moves to a point on its PPF where it is now making mostly weapons and very little food, call this point B., which of the following is true?

a. At point A, there is a lower o.c. for weapons.

b. At point A, there is a higher o.c. for weapons.

c. At point B, there is a higher o.c. for weapons.

d. At point B, there is a lower o.c. for weapons.

e. At point A, there is a lower o.c. for food.

f. At point B, there is a lower o.c. for food.

g. a. and c. are the correct answers.

h. b. and d. are the correct answers.

i. a., c., and e. are the correct answers.

j. a., c. and f. are the correct answers.

k. b., d., and e. are the correct answers.

l. b., d., and f. are the correct answers.

m. None of the above answers is correct.