Question

For this economy, an increase in the quantity of capital goods produced without a corresponding decrease in the quantity of consumer goods produced
a. cannot happen because there is always an opportunity cost.
b. is represented by a movement from point E to point A.
c. is represented by a movement from point C to point B.
d. is represented by a movement from point E to point B.
e. is only possible with an increase in resources or technology.

Answer 1

Answer:

d. is represented by a movement from point E to point B.

Explanation:

For the economy  an increase in the quantity of capital goods produced without a corresponding decrease of the quantity of consumer goods produced is represented by the movement from point E to point B.

Hence the answer is option d.