Figure 2-8 -Refer to Figure 2-8,Panel (A)and Panel (B).Which of the Following

Multiple Choice

Figure 2-8


-Refer to Figure 2-8,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

A) the tradeoff between the production of donuts and coffee changes
B) the opportunity cost of a cup of coffee is higher at all levels of coffee production
C) production of 4 donuts and 2 cups of coffee becomes possible
D) production of 1 donut and 4 cups of coffee becomes efficient