Figure 2-1 Shows the Production Possibilities Curve of an Economy

question 6

Multiple Choice

Figure 2-1 shows the production possibilities curve of an economy that produces bread and wine. A movement from Point B to Point C:Figure 2-1

• A)involves sacrificing bread in order to produce a greater quantity of wine.
• B)involves sacrificing wine in order to produce a greater quantity of bread.
• C)involves no sacrifice, as the opportunity cost of production is zero everywhere along the production possibilities curve.
• D)will increase the level of unemployment in the economy.
• E)will decrease the level of unemployment in the economy.