Refer to the Following Production Possibilities Curves

Multiple Choice

Refer to the following production possibilities curves. Curve (a) is the current curve for the economy. Given production possibilities curve (a) , the combination of capital and consumer goods indicated by point L:

A) would entail substantial unemployment.
B) would entail an inefficient use of society's resources.
C) is beyond the productive capacity of this society.
D) suggests the productive capacity of the system is declining.