Suppose there are two economies, Alpha and Beta, which have the same production possibilities curves and are on the same point on each curve. If Beta then devotes more resources to investment goods than consumer goods when compared to Alpha, then in the future:

A. Beta will not be able to achieve full employment or productive efficiency
B. Beta will experience greater economic growth than Alpha.
C. Alpha will experience greater economic growth than Beta.
D. Alpha will not be able to achieve full employment or productive efficiency.


Answer: B

Economics

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