If a Country Must Decrease Current Consumption to Increase the Amount

question 284

Multiple Choice

If a country must decrease current consumption to increase the amount of capital goods it produces today, then it must

• A) be using resources inefficiently today, but will be more efficient in the future.
• B) must be producing outside the production possibilities frontier and will continue to do so in the future.
• C) must not have private ownership of property and will have to follow planning authorities' decisions today and in the future.
• D) be producing along the production possibilities frontier today and its production possibilities frontier will shift outward if it produces more capital goods.

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