Narrbegin Exhibit 2 Narrend
-As Shown in Exhibit 2

Narrbegin Exhibit 2.6 Production possibilities frontier data
$$\begin{array} { | l | r | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline \text { Capital goods } & 15 & 14 & 12 & 5 & 5 & 0 \\\hline \text { Cansumer guods } & 0 & 2 & 4 & 6 & \mathbf { 0 } & 10\\\hline\end{array}$$ Narrend
-As shown in Exhibit 2.6, if the economy reallocates resources from capital goods to consumer goods:

A) it gains extra units of capital goods due to technological progress.
B) it is an inefficient way of using the economy's scarce resources.
C) it gains extra units of consumer goods but has to sacrifice units of capital goods.
D) it gains extra units of consumer goods without sacrificing units of capital goods.

Correct Answer:

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