Given Below Is the Production Possibilities Schedule for a Small

question 2

Multiple Choice

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis) . A movement up along the production possibilities curve [PPC] will imply:

• A)an increase in wheat production.
• B)an increase in both wheat and wine production.
• C)a decline in both wheat and wine production.
• D)an increase in wine production.
• E)no change in either wheat or wine production.

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