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Figure 3-11: Production Possibilities and Circular-Flow Diagram Quantity of coconuts Money Households Money 35 D 30 Goods Factors 25 and B services 20 15 Markets

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Figure 3-11: Production Possibilities and Circular-Flow Diagram Quantity of coconuts Money Households Money 35 D 30 Goods Factors 25 and B services 20 15 Markets for Factor goods and 10 markets services 5 Goods 10 20 30 40 50 and Quantity of fish services Factors Money Firms Money Use the "Production Possibilities and Circular-Flow Diagram" Figure 3-11. Assume the figures represent the same economy. The economy is currently producing at point B. The economy moves from point B to point A. Explain how the moved from point B to point A took place by using the elements of the Circular

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