The country of Econoland produces two goods:textbooks and widgets.Last year,it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same) production possibilities frontier.Which statement best explains the change
A)Econoland was originally experiencing unemployment but is now employing all its resources.
B)Econoland experienced an improvement in widget-making technology.
C)Econoland acquired more resources.
D)Econoland experienced a high level of emigration out of the country.

Question

Quizplus · Accepted Answer

Econoland moved from a point inside the production possibilities frontier to a point on it, indicating that it went from underutilizing resources (unemployment) to fully utilizing them.

The Country of Econoland Produces Two Goods:textbooks and Widgets