Refer to the production possibilities curve. At the onset of the Second World War, the United States had large amounts of idle human and property resources. Its economic adjustment from peacetime to wartime can best be described by the movement from point

Economic Adjustment from peacetime to war time is movement from : point on the PPC to point inside PPC

Explanation:

Production Possibility Curve is graph representing product combinations,  that an economy can produce with given resources & technology.

Points on PPC are based on assumption that resources are fully efficiently utilised , given resources & technology. Any point below PPC represents under utilisation of resources. US war leaving human & property resources idle, depict inefficient / under utilisation of resources. This hence lead to - movement from point on PPC to point inside PPC, from peacetime to wartime.

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