Use the Following to Answer Question

Multiple Choice

Use the following to answer question:

-(Figure: Production Possibilities and Circular-Flow Diagram) Use Figure: Production Possibilities and Circular-Flow Diagram.Assume the two figures represent the same economy.Suppose that in the circular-flow diagram most firms undergo a significant increase in productivity.This results in a significant increase in the output of both coconuts and fish.If all other variables remain unchanged,then the adjustment in this economy would be BEST represented in the production possibilities figure by a movement from point A toward:

A) point A (no movement) .
B) point B (a decrease in coconut production and an increase in fish production) .
C) point C (a decrease in coconut production) .
D) point D (an outward shift of the entire curve) .