-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) indicates an outward shift in the production possibilities curve, suggesting an improvement in technology. Since the shift is only in the direction of capital goods, it implies an improvement in capital goods technology but not in consumer goods technology.

-Refer to the Above Production Possibilities Curves