Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A) The economy has acquired new resources that are well suited for producing wool.
B) Land that was once used to grow wheat is now being used to graze sheep.
C) The economy is producing more bread by choosing to produce less wool.
D) The technology for growing wheat has improved.

Question

Quizplus · Accepted Answer

The movement from point A to point B represents a shift in resources from wheat production to sheep grazing. This indicates that the land that was previously used to grow wheat is now being used to graze sheep, implying that the economy has decided to allocate more resources to wool production. Therefore, option B is the best answer. Option A is incorrect because there is no evidence of new resources being acquired. Option C is incorrect because there is no indication of an increase in bread production. Option D is also incorrect because there is no mention of technological improvements.

Refer to the Above Figure