Refer to the Above Figure

question 232

Multiple Choice

Refer to the above figure. How do you describe what is happening as the economy moves from point C to point B?

• A) Previously unemployed resources are now being devoted to the production of wool.
• B) Previously unemployed resources are now being devoted to the production of bread.
• C) The economy has increased its wool production by 30 bales at an opportunity cost of 250 loaves of bread.
• D) The economy has acquired new resources for making bread.