Refer to the above production possibilities curve.At the onset of World War II Canada had large amounts of idle human and property resources.Its economic adjustment from peacetime to wartime can best be described by the movement from point:
A)c to point b.
B)b to point c.
C)a to point b.
D)c to point d.

Question

Refer to the above production possibilities curve.At the onset of World War II Canada had large amounts of idle human and property resources.Its economic adjustment from peacetime to wartime can best be described by the movement from point:
A)c to point b. 
B)b to point c. 
C)a to point b. 
D)c to point d.

Quizplus · Accepted Answer

The movement from point a to point b represents an increase in production of military goods, while sacrificing some production of consumer goods. This shift in resources is indicative of Canada's economic adjustment from peacetime to wartime.

Refer to the Above Production Possibilities Curve