Multiple Choice
Figure 2-7
-Which of the following could explain the shift in the production possibilities frontier shown in Figure 2-7 from AC to AB?
A) technical improvements in both petroleum and clothing production
B) a productive improvement in clothing production that has no effect on petroleum production
C) a decrease in the size of the labor force that can produce either petroleum products or clothing
D) major oil reserves in Alaska are declared off-limits to producers in order to protect the environment
E) major oil reserves are discovered off the coast of Africa
Correct Answer:

Verified
Correct Answer:
Verified
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