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.

Question

Quizplus · Accepted Answer

If the government policy change results in increased production of both consumer and investment goods, it suggests that there was unused capacity in the economy before the policy change, which could indicate unemployment and/or inefficient use of resources.

Assume That a Change in Government Policy Results in the Increased