Question 3 Imagine two societies A and B with the production possibility curve shown in the diagram. In year t Society A produces only capital goods and Society B only butter. 175 Capital Goods 100 RO 144 168 210 Butter (tons) In year t + 1 they both produce only butter. Which of the following describes both societies in year t + 1? Both have the same capital stock and both produce the same amount of butter. Both have the same capital stock but A produces more butter. A has a larger capital stock but B produces more butter. A has a larger capital stock and A produces more butter