If a Country Must Decrease Current Consumption to Increase the Amount

question 382

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

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Definitions:

Right to "Cover"

The right of a buyer to purchase substitute goods when a seller fails to fulfill their contract obligations, and to seek damages from the seller for any loss incurred.

Installment Plan

A method of payment for goods or services in which a customer agrees to pay the price in periodic installments over a set period of time.

Statute of Limitations

The legal time limit within which a lawsuit or criminal charge must be filed after an alleged offense or harm.

Consequential Damages

Indirect damages that can be recovered if they were reasonably foreseeable at the time the contract was made and result from a party's breach of contract.