The Diagram Below Shows Two Production Possibilities Boundaries for Country

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.A shift of the production possibilities boundary from PPB₁ to PPB₂ implies

A) a movement from full employment to some unemployment.
B) that if point E is the new choice of outputs,productivity has increased in the consumer goods industry.
C) that productive capacity in the capital goods industries has improved.
D) an inevitable decrease in total output.
E) that productive capacity in the consumer goods industry has improved.