Refer to the above figure. How do you describe what is happening as the economy moves from point C to point B?
A) Previously unemployed resources are now being devoted to the production of wool.
B) Previously unemployed resources are now being devoted to the production of bread.
C) The economy has increased its wool production by 30 bales at an opportunity cost of 250 loaves of bread.
D) The economy has acquired new resources for making bread.

Question

Quizplus · Accepted Answer

Moving from point C to point B represents a shift in resources from the production of bread to the production of wool. This means that previously unemployed resources are now being devoted to wool production, implying that the economy is utilizing its existing resources more efficiently.

Refer to the Above Figure