Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country:
A. is producing the same number of capital goods in both years.
B. is producing the same number of consumption goods in both years.
C. has shown no growth between Year X and Year Y.
D. has higher unemployment in Year X than in Year Y.
Answer: B
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