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Exhibit: Production Possibilities Curve-Military and Civilian Goods

-(Exhibit: Production Possibilities Curve-Military and Civilian Goods) The movement from point G on Curve 1 to point E on Curve 2 means that the:
A) economy has grown.
B) economy has become less efficient.
C) quality and/or the quantity of the factors of production has decreased.
D) demand for military goods has risen.

Question

Use the following to answer question(s): 
Exhibit: Production Possibilities Curve-Military and Civilian Goods
 
-(Exhibit: Production Possibilities Curve-Military and Civilian Goods) The movement from point G on Curve 1 to point E on Curve 2 means that the:
A) economy has grown. 
B) economy has become less efficient. 
C) quality and/or the quantity of the factors of production has decreased. 
D) demand for military goods has risen.

Quizplus · Accepted Answer

The movement from point G on Curve 1 to point E on Curve 2 shows an increase in the production of both military and civilian goods, indicating economic growth.

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