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The Diagram Below Shows Two Production Possibilities Boundaries for Country

Question 26

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The diagram below shows two production possibilities boundaries for Country X. The diagram below shows two production possibilities boundaries for Country X.   FIGURE 1- 3 -Refer to Figure 1- 3. A shift of the production possibilities boundary from PPB1 to PPB2 implies A)  that if point E is the new choice of outputs, productivity has increased in the consumption goods industry. B)  a movement from full employment to some unemployment. C)  that technology in the capital goods industries has improved. D)  that technology in the consumption goods industry has improved. E)  an inevitable decrease in total output. FIGURE 1- 3
-Refer to Figure 1- 3. A shift of the production possibilities boundary from PPB1 to PPB2 implies


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

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