FIGURE 2-2

-Refer to Figure 2-2. Which of the following statements about a movement from Point D to Point C is the most accurate?

Question

FIGURE 2-2
 
-Refer to Figure 2-2. Which of the following statements about a movement from Point D to Point C is the most accurate?

Quizplus · Accepted Answer

Moving from Point D to Point C involves a shift away from cake production and towards cupcake production, meaning one cake must be sacrificed to produce four cupcakes. This is represented by the downward slope of the production possibility curve between points D and C. Option A is incorrect because it suggests that cupcakes are more costly to produce than cakes, which is not supported by the information in the graph. Option C is partially correct, but does not capture the fact that there is a tradeoff between goods. Option D is incorrect because there is no indication in the graph that the movement from D to C leads to an increase in unemployment.

FIGURE 2-2 -Refer to Figure 2-2. Which of the Following Statements About