The Country of San Ignacio Produces Two Goods: Beach Towels

Multiple Choice

The country of San Ignacio produces two goods: beach towels and soccer balls. Last year, it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same) production possibilities frontier. Which statement best explains the change?

A) San Ignacio was originally experiencing unemployment but is now employing all its resources.
B) San Ignacio experienced an improvement in soccer ball producing technology.
C) San Ignacio acquired more resources.
D) San Ignacio experienced a high level of emigration out of the country.