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Hypothetical Production Schedule for a Two-Product Economy -If the Economy Were Producing at Point E and Moves

Question 123

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Hypothetical Production Schedule for a Two-Product Economy Units ofUnits of Points  Consumer Goods  Capital Goods  A 020 B 4016 C 7212 D 968 E 1124 F 1200\begin{array}{ccc}&Units~ of&Units~ of\\\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \\\hline \text { A } & 0 & 20 \\\text { B } & 40 & 16 \\\text { C } & 72 & 12 \\\text { D } & 96 & 8 \\\text { E } & 112 & 4 \\\text { F } & 120 & 0\end{array}
-If the economy were producing at point E and moves to point D,


A) resources will shift from producing capital goods to producing consumer goods.
B) resources will shift from producing consumer goods to producing capital goods.
C) more capital goods can be produced without any sacrifice in consumer goods production.
D) more consumer goods can be produced without any sacrifice in capital goods production.

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