At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. Point E because it is where the production possibilities frontier will shift with growth. B. Point A because it is where resources are saved for investments. OC. Point D because it is where the most resources are used to produce consumption goods. OD. Point C because it is an efficient point where a mix of capital and consumption goods are produced. O E. Point B because it is where the most resources are used to produce capital goods.
At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. Point E because it is where the production possibilities frontier will shift with growth. B. Point A because it is where resources are saved for investments. OC. Point D because it is where the most resources are used to produce consumption goods. OD. Point C because it is an efficient point where a mix of capital and consumption goods are produced. O E. Point B because it is where the most resources are used to produce capital goods.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 6SQP
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Transcribed Image Text:Which point(s) are efficient? Briefly explain why.
B
Points A, B, C, and D because they are attainable.
Points B, C, and D because this is where maximum output is produced with available resources.
Point A because it is inside the production possibilities frontier.
Point E because it is where the most capital and consumption goods combined are produced.
A
D
Point B because it is where the most resources are used to produce capital goods.
Which point(s) are inefficient? Briefly explain why.
PPF
O A. Points B, C, and D because they are on the production possibilities frontier.
O B. Points B, C, D, and E because they are unattainable.
Consumption goods
O C. Points A, B, C, and D because they are attainable.
O D. Point E because it is unattainable.
OE. Point A because production there is not using all available resources.
At which point is the country's future growth rate likely to be the highest? Briefly explain why.
O A. Point E because it is where the production possibilities frontier will shift with growth.
O B. Point A because it is where resources are saved for investments.
O C. Point D because it is where the most resources are used to produce consumption goods.
D. Point C because it is an efficient point where a mix of capital and consumption goods are produced.
O E. Point B because it is where the most resources are used to produce capital goods.
-....
Capital goods
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