In Figure 3-4, which of the following statements is true?

I.A shift in the production possibilities frontier indicated by point B to the frontier indicated by points D, A and C could be caused by stay-at-home orders and business lockdowns that forbid people from going to work, in effect decreasing the supply of human resources available to produce goods and services.

II.Operating at point E indicates the economy is either not fully employing its resources due to a lack of spending on goods and services by households and businesses or is inefficiently utilizing its available resources.

III.A shift in the production possibilities frontier indicated by points D, A and C to the frontier indicated by point B could be caused by investments in new technologies and/or human capital.

a.I and II

b.I and III

c.II and III

d.I, II and III

In Figure 3-4, for which of the following would this statement be true: "To get more guns, we have to give up some butter."A movement from

a.E to A

b.A to E

c.A to D

d.A to C

In Figure 2, there would be a surplus of 50 shirts if

a.the price were $10

b.the price were $8

c.the price were below $8

d.the price were between $8 and $6