The following figure depicts a nonlinear production possibilities curve.

-Refer to the figure above.Assuming that the initial situation is point B,which one of the following represents a reallocation of resources away from Web sites to computer programs production?
A) Point A
B) Point C
C) Point D
D) Point E

Question

The following figure depicts a nonlinear production possibilities curve.
 
-Refer to the figure above.Assuming that the initial situation is point B,which one of the following represents a reallocation of resources away from Web sites to computer programs production?
A) Point A 
B) Point C 
C) Point D 
D) Point E

Quizplus · Accepted Answer

A reallocation of resources away from Web sites to computer programs production would involve moving from a point where more resources are allocated to Web sites to a point where more resources are allocated to computer programs. Point A represents such a reallocation, as it involves moving from a point where more resources are allocated to Web sites (point B) to a point where more resources are allocated to computer programs.

The Following Figure Depicts a Nonlinear Production Possibilities Curve