question 1

Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.2

Production Possibilities Schedule
Combination	Capital Goods	Consumer Goods
A	4	0
B	3	4
C	2	7
D	1	9
E	0	10

Consider Table 2.2. The production possibilities curve [PPC] representing this schedule would be:

Group of answer choices

A) bowed in if consumer goods are plotted on the horizontal axis and bowed out if capital goods are plotted on the horizontal axis.

B) bowed in.

C) a positively sloped straight line.

D) bowed out.

E) a negatively sloped straight line.

Question 2

Table 1.4

Table 1.4: Production Possibilities Schedule
Choice	Good A	Good B
1 2 3 4 5	100 90 70 40 0	0 20 40 60 80

Assume that our national economy is operating at a point on its bowed-out production possibilities curve. According to the production possibilities schedule in Table 1.4, if our nation produces more of Good A, then:

Group of answer choices

A) we will experience a greater rate of economic growth.

B) it must have a comparative advantage in the production of Good A.

C) it must sacrifice larger and larger amounts of Good B to do so.

D) the amount of Good B that must be forgone decreases.

E) the resources transferred will be increasingly efficient in producing Good A.