22. Suppose Country A produces few consumption goods and many investment goods while Country B produces few
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22. Suppose Country A produces few consumption goods and many investment goods while Country B produces few investment goods and many consumption goods. Other things being equal, you would expect
a. per capita income to grow more rapidly in Country B.
b. population to grow faster in Country B.
c. the production possibilities curve for Country A to shift out more rapidly than that of Country B.
d. that if both countries started with identical production possibilities curves, in 20 years, people in Country B will be able to produce more consumer goods than people in Country A.
e. that both c and d are true.
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