Refer to the above production possibilities curves.Curve (a) is the current curve for the economy.The movement from curve (a) to curve (b) suggests:
A)a movement from unemployment to full employment.
B)an improvement in capital goods technology but not in consumer goods technology.
C)an improvement in consumer goods technology but not in capital goods technology.
D)a decline in the total output of this society.

Question

Refer to the above production possibilities curves.Curve (a) is the current curve for the economy.The movement from curve (a) to curve (b) suggests:
A)a movement from unemployment to full employment. 
B)an improvement in capital goods technology but not in consumer goods technology. 
C)an improvement in consumer goods technology but not in capital goods technology. 
D)a decline in the total output of this society.

Quizplus · Accepted Answer

The movement from curve (a) to curve (b) suggests an improvement in capital goods technology but not in consumer goods technology. This is because curve (b) represents a shift outward in the production possibilities curve, indicating an increase in the maximum amount of capital goods that can be produced without sacrificing the production of consumer goods. Therefore, the economy has become more efficient in producing capital goods, but there has been no improvement in the production of consumer goods.

Refer to the Above Production Possibilities Curves