Exhibit 2-14 Production Possibilities Curve

question 9

Multiple Choice

Exhibit 2-14 Production possibilities curve
-In Exhibit 2-14, this economy was located at point E but has now moved to point F.

• A) This would be an impossible move because the economy does not have sufficient resources.
• B) The rate of unemployment in this economy would have increased.
• C) Consumption goods production has increased, but capital goods production has decreased.
• D) The economy has decreased unemployment, but some degree of unemployment still exists.
• E) This economy has achieved full employment.

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