-Exhibit B-8 (On the Previous Page) Shows an Economy Located

-Exhibit B-8 (on the previous page) shows an economy located at point A, within its production possibilities curve. Which of the following statements is false?

A) This economy could produce more of both capital and consumption goods.
B) This economy is experiencing full employment.
C) This economy could produce more capital goods without decreasing the quantity of consumption goods produced.
D) This economy could produce more consumption goods without decreasing the quantity of capital goods produced.
E) Not every resource in this economy is being utilized.