A movement from point F to point D in Figure 1.3 results in
A)A reallocation of resources from mop production to broom production.
B)Permanent unemployment of workers producing brooms.
C)A reallocation of resources from broom production to mop production.
D)More efficient production.

Question

A movement from point F to point D in Figure 1.3 results in
A)A reallocation of resources from mop production to broom production. 
B)Permanent unemployment of workers producing brooms. 
C)A reallocation of resources from broom production to mop production. 
D)More efficient production.

Quizplus · Accepted Answer

Moving from point F to point D indicates a shift in the production possibilities frontier (PPF). This implies that resources are being reallocated from producing brooms to producing mops. Therefore, the best choice is C, which states that there is a reallocation of resources from broom production to mop production.

A Movement from Point F to Point D in Figure