Concept:Movement along the same production possibility curve (PPC) reflects the trade-off involved when an economy reallocates resources between two goods.
Explanation:The PPC shows the maximum combinations of two goods that can be produced with fixed resources and technology.
Moving from point
A to point
B, and then from point
B to point
C, means the economy produces more of one good by giving up some units of the other good.
The value of the good sacrificed is the opportunity cost of producing more of the other good.
Economic depression would shift the PPC inward, while economic growth would shift it outward.
Unemployment would be represented by a point inside the PPC, not by movement along the curve.
Therefore, the movement from
A to
B and from
B to
C is caused by opportunity cost.
Answer:D. Opportunity cost.
