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Consider the following production possibilities frontier (PPF). Capital Goods 500 400 300 200 100 Consumer Goods 150 250 350 450 550 (a) How many capital
Consider the following production possibilities frontier (PPF). Capital Goods 500 400 300 200 100 Consumer Goods 150 250 350 450 550 (a) How many capital goods and consumer goods does this economy produce at Point b, and how many does it produce at Point d? (2 marks) (b) What is the opportunity cost of consumer goods in terms of capital goods ifthe economy moves production from Point b to Point d? (2 marks) (c) Would you expect higher economic growth in the future for this economy at Point b or Point d? Briey explain your answer. (2 marks)
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