If a country must decrease current consumption to increase the amount of capital goods it produces today, then it must
A) be using resources inefficiently today, but will be more efficient in the future.
B) be producing along the production possibilities frontier today and its production possibilities frontier will shift outward if it produces more capital goods.
C) must be producing outside the production possibilities frontier and will continue to do so in the future.
D) must not have private ownership of property and will have to follow planning authorities' decisions today and in the future.
B
You might also like to view...
If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) oil prices. B) taxes. C) government purchases. D) the money supply and a decrease in interest rates.
In the demand and supply analysis of ___________ markets, the “price” is the rate of return or the interest rate received.
a. financial b. retail c. industrial d. agricultural
A vertical line showing the economy's potential is called the:
A. long-run aggregate supply line. B. short-run aggregate supply line. C. short-run equilibrium output line. D. aggregate demand curve.
Continued economic growth is desirable if it means that the standard of living continues to increase.
Answer the following statement true (T) or false (F)