-In Exhibit GG-2, Suppose Ronilla's Position Ends Up at Point

Multiple Choice

-In Exhibit GG-2, suppose Ronilla's position ends up at point A. We know then that

A) Ronilla's production possibilities curve shifted downward to equal Magar's
B) there is substantial unemployment or underemployment in Ronilla
C) Ronilla now faces a vicious circle of poverty
D) Ronilla's preferences shifted out of capital to food
E) Ronilla and Magar are both producing the same combinations of goods and both are at full employment