Exhibit 2-4 Production possibilities curve data
A
B
C
D
E
Capital goods 0
10
20
30
40
Consumer goods200
180
140
80
0
In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect
A. less growth in the future because it will use up its consumer goods.
B. more growth in the future because of the accumulation of capital.
C. the same amount of growth in the future but with a lower standard of living.
D. the same amount of growth in the future but with a higher standard of living.
Answer: B
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