Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A) The economy has acquired new resources that are well suited for producing bread.
B) Land that was once used to graze sheep is now being used to grow wheat.
C) Resources are becoming unemployed.
D) The technology for growing wheat has improved.
Question 2
One of the basic differences between social and economic regulations is that
A) economic regulations only apply to financial institutions while social regulations apply to a greater variety of institutions.
B) social regulations only apply to non-profit organizations while economic regulations apply only to for-profit organizations.
C) economic regulations cover only particular industries while social regulations apply to all firms in the economy.
D) economic regulations focus on the banking industry while social regulations focus on monopolies.
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