FIGURE 2-7 -Refer to Figure 2-7. What Happens in the Economy When

Multiple Choice

FIGURE 2-7

-Refer to Figure 2-7. What happens in the economy when production moves from Point A to Point B?

A) The economy increases production of clothing, but not food.
B) The economy operates at its productive capacity once it reaches Point B.
C) The economy increases production of food, but not clothing.
D) The economy is using its resources inefficiently to produce both food and clothing.