Figure 2-5 -Refer to Figure 2-5.Suppose This Economy Is Producing at Point

Multiple Choice

Figure 2-5
-Refer to Figure 2-5.Suppose this economy is producing at point D.Which of the following statements would best explain this situation?

A) The economy has insufficient resources to produce at a more desirable point.
B) The economy's available technology prevents it from producing at a more desirable point.
C) There is widespread unemployment in the economy.
D) Any of the above statements would be a legitimate explanation for this situation.