If the Production of 2,000 Cars and 500 Tons of Corn

Multiple Choice

If the production of 2,000 cars and 500 tons of corn during a year is economically efficient for a country which produces only these two products, which of the following conclusions can be drawn?

A) It satisfies domestic demand completely.
B) The production of cars can not be increased without reducing the production of corn.
C) The reallocation of resources to change the production level must reduce production of both goods.
D) It is possible to increase the production of both if resources can be reallocated.