An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a small amount of capital goods and a large amount of consumer goods. This is most likely to be a
A. country with a command economy.
B. "rich" country because such a nation can afford to sacrifice.
C. country with a free market.
D. "poor" country because such a nation has difficulty devoting many resources to the production of capital goods.
Answer: D
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Indicate whether the statement is true or false
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