Assume that a change in government policy results in the increased production of all types of products.It can be concluded that the:
A)economy was not fully employing its resources before the policy change
B)economy's production possibilities curve has shifted to the left as a result of the policy change
C)economy's production possibilities curve does not bow out to the right
D)law of increasing opportunity costs does not apply in this society
E)economy's resources are freely available

Question

Quizplus · Accepted Answer

If there is increased production of all types of products, it means that the economy was not fully employing its resources before the policy change. Otherwise, the economy would not be able to increase its production without facing resource constraints.

Assume That a Change in Government Policy Results in the Increased