Figure: Production Possibilities and Circular-Flow Diagram

question 5

Essay

Figure: Production Possibilities and Circular-Flow Diagram
(Figure: Production Possibilities and Circular-Flow Diagram) Look at the figure Production Possibilities and Circular-Flow Diagram.Assume the two figures represent the same economy.Suppose that in the circular-flow diagram there is a significant decrease in the amount of labor flowing to the firms that produce coconuts.If all other variables remain unchanged, this adjustment in the economy would be best represented in the production possibilities figure by a move from point A toward:
A.point A (no movement would occur).
B.point B (an increase in fish production).
C.point C (a decrease in coconut production).
D.point D (an outward shift of the entire curve).

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Definitions:

External Matters

Issues or factors that originate outside of an individual or system and can impact its functioning.

Control

The power to influence or direct people's behavior or the course of events.

Information Power Base

A source of influence derived from possessing knowledge or information that is needed or valued by others.

Operational Data

Information collected from the day-to-day operations of a business or organization, used to support real-time decision-making and operational tasks.