The current stage of the economy is depicted in curve I. The movement of curve I to II suggests___________

  • A an Improvement in capital goods technology but not In consumer goods technology
  • B a movement from unemployment to full employment
  • C that the output for the society has declined
  • D a gain in consumer goods technique and not in capital goods technique
jamb 2018economics

The correct answer is B. a movement from unemployment to full employment

The movement of curve I to II also implies that the economy has moved from a point of inefficiency to a point of efficiency, meaning that it is using all of its resources optimally and there is no waste or unemployment.

Therefore, the best answer to this question is B (“a movement from unemployment to full employment”).

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