Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB, this can be shown by:
A)a shift of the curve from AB to CD.
B)a movement from point 3 to point 1.
C)a movement from point 2 to point 4.
D)point 5 in the diagram.

Question

Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB, this can be shown by:
A)a shift of the curve from AB to CD. 
B)a movement from point 3 to point 1. 
C)a movement from point 2 to point 4. 
D)point 5 in the diagram.

Quizplus · Accepted Answer

A movement away from full employment of resources would mean that the economy is producing at a point within the curve AB. If the economy moves from point 2 to point 4, it is producing less of both goods, indicating a decrease in the use of resources and a movement away from full employment. Points 1 and 3 are both on the curve, indicating full employment of resources. A shift of the curve from AB to CD would indicate a change in the available resources or technology, rather than a movement away from full employment. Point 5 is not a point on the curve, so it is not relevant to determining movement away from full employment.

Refer to the Above Diagram