The diagram shows the production possibility curves for an economy in Year 1 (X1 Y1) and Year 2 (X2 Y2). What conclusion can be drawn from the diagram?
- AThe cost of production was lower in Year 2 than in Year 1.
- BThe full employment level of output was lower in Year 2 than in Year 1.
- CThe opportunity cost of production was lower in Year 2 than in Year 1.
- DUnemployment rose between Year 1 and Year 2.