Figure 2-6
-Refer to Figure 2-6.If this economy moves from point F to point G,then which of the following statements is correct?
A)This economy has moved from a point of inefficient production to a point of efficient production.
B)This economy has experienced economic growth.
C)This economy has experienced an increase in employment.
D)None of the above is correct.

Question

Figure 2-6 
-Refer to Figure 2-6.If this economy moves from point F to point G,then which of the following statements is correct?
A)This economy has moved from a point of inefficient production to a point of efficient production. 
B)This economy has experienced economic growth. 
C)This economy has experienced an increase in employment. 
D)None of the above is correct.

Quizplus · Accepted Answer

Moving from point F to point G represents an increase in the production possibilities of the economy. This is indicative of economic growth, which means that the economy can produce more goods and services than before without sacrificing the production of other goods and services. It does not necessarily indicate an increase in employment or moving from inefficient to efficient production.

Figure 2-6 -Refer to Figure 2-6.If This Economy Moves from Point F