Exhibit 1-7
-Refer to Exhibit 1-7. A movement from Point B to Point D indicates
A)a gain in Good X and a loss in Good Y.
B)a gain in Good Y and a loss in Good X.
C)a gain in both Good X and Good Y.
D)a loss in both Good X and Good Y.
E)no change in the production of Good X or Good Y.

Question

Exhibit 1-7 
-Refer to Exhibit 1-7. A movement from Point B to Point D indicates
A)a gain in Good X and a loss in Good Y. 
B)a gain in Good Y and a loss in Good X. 
C)a gain in both Good X and Good Y. 
D)a loss in both Good X and Good Y. 
E)no change in the production of Good X or Good Y.

Quizplus · Accepted Answer

A movement from Point B to Point D on a production possibilities curve typically indicates an increase in the production of Good X and a decrease in the production of Good Y, reflecting a trade-off between the two goods.

Exhibit 1-7 -Refer to Exhibit 1-7. a Movement from Point B to Point