-Two Countries, Alpha and Beta, Have Identical Production Possibilities Frontiers

question 384

Multiple Choice

-Two countries, Alpha and Beta, have identical production possibilities frontiers illustrated above. If Alpha produces at point a and Beta produces at point b, then

• A) Beta's economic growth rate will exceed Alpha's.
• B) Alpha consumes less than Beta today, but it will grow faster than Beta.
• C) Alpha's and Beta's economic growth rates will be the same.
• D) Beta's future consumption will be greater than Alpha's.

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