If an economy is operating on its production possibilities curve for consumer goods and capital goods,this means that:

A) it is impossible to produce more consumer goods.
B) resources cannot be reallocated between the two goods.
C) it is impossible to produce more capital goods.
D) more consumer goods can only be produced at the cost of fewer capital goods.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced in a given time period with available resources.

Consumer Goods

Products and commodities bought and used by individuals and households for personal consumption.

Capital Goods

Long-lasting goods that are used in the production of other goods and services but are not themselves part of the end product.