Questions: Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by A) a reduction in unemployment. B) an improvement in technology. C) an increase in economic growth. D) a change in society's preferences for motorcycles versus hybrid cars.

The answer is B) an improvement in technology.

Explanation for each option:

A) A reduction in unemployment: This would typically move the economy from a point inside the production possibilities frontier (PPF) to a point on the PPF, indicating more efficient use of resources. However, moving from Point A to Point D suggests a shift of the PPF itself, which is not explained by a reduction in unemployment.

B) An improvement in technology: This is the correct answer because an improvement in technology can shift the production possibilities frontier outward, allowing the economy to produce more of both goods. This would explain a movement from Point A to Point D if Point D is beyond the original PPF.

C) An increase in economic growth: While economic growth can lead to an outward shift of the PPF, it is often driven by factors such as technological improvements or increases in resources. Without specific context, this option is less precise than option B.

D) A change in society's preferences for motorcycles versus hybrid cars: This would typically result in a movement along the PPF rather than a shift of the PPF itself. It does not explain a movement from Point A to Point D if Point D is beyond the original PPF.

In summary, the movement from Point A to Point D is best explained by an improvement in technology, which allows for greater production capabilities.