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Refer to the Above Production Possibilities Curves

Question 131

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  Refer to the above production possibilities curves. Curve (a)  is the initial curve for the economy. If the economy's production possibilities then shift to curve (b) , then: A)  Point N would still indicate a case of full production and full employment of resources B)  Point P would still indicate a case of full production and full employment of resources C)  Point N would indicate some unemployment or underemployment of resources D)  Point L would indicate some unemployment or underemployment of resources Refer to the above production possibilities curves. Curve (a) is the initial curve for the economy. If the economy's production possibilities then shift to curve (b) , then:


A) Point N would still indicate a case of full production and full employment of resources
B) Point P would still indicate a case of full production and full employment of resources
C) Point N would indicate some unemployment or underemployment of resources
D) Point L would indicate some unemployment or underemployment of resources

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