If a Country Must Decrease Current Consumption to Increase the Amount

question 231

Multiple Choice

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

• A) be producing along the production possibilities frontier today and its production possibilities frontier will shift outward if it produces more capital goods.
• 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 authoritiesʹ decisions today and in the future.
• D) be using resources inefficiently today, but will be more efficient in the future.

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Definitions:

Intersection

The point at which two or more lines, paths, or roads meet or cross each other.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Gibbons v. Ogden

A landmark 1824 Supreme Court case that held the power to regulate interstate commerce was granted to Congress by the Commerce Clause of the U.S. Constitution.

Commerce

Trade among the several states or between any foreign country and any state or territory.