Assume That a Change in Government Policy Results in the Increased

Multiple Choice

Assume that a change in government policy results in the increased production of both consumer goods and investment goods.It can be concluded that:

A) the economy was suffering from unemployment and/or the inefficient use of resources before the policy change.
B) the economy's production possibilities curve has been shifted to the left as a result of the policy decision.
C) this economy's production possibilities curve is convex (bowed inward) as viewed from the origin.
D) the law of increasing opportunity costs does not apply in this society.