Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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