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 higher level of production of capital goods, while the level of production of consumer goods remains the same as on curve (a).

Refer to the Above Production Possibilities Curves