Answer 7:
Option D.
A movement from point C to point D represents fall in the number of bananas being produced and the production of another good stays the same. If the production of bananas is falling, it can be caused due to unemployment as unemployment reduces the overall level of goods produced in the economy. It can also be caused by a decrease in the society's preferences for bananas as decline in preference will reduce the overall output of bananas produced. Fall in the output can also be caused when fewer resources are available for production of bananas. Thus, all the options mentioned above are correct.
2. What is the result of Machiavelli's "realism"? Do you think his emphasis on practically becomes...