QUESTION 7 C A Capital Goods 0 B D Consumer Goods Refer to the above graph. If the production possibilities curve for an economy is at CD, but the economy is operating at point x, the reasons are most likely to be because of: O a. lack of full employment and inefficient allocation of resources. O b. improvement in labor productivity and the number of work-hours O c. increases in the quantity and the quality of resources O d. technological progress and industrial change