Suppose That Country a Produces Mostly Consumption Goods and Few

question 78

Multiple Choice

Suppose that country A produces mostly consumption goods and few investment goods, while country B produces mostly investment goods with few consumption goods. Other things constant, which of the following is most likely to happen in the future?

• A) The per capita income of country A will grow more rapidly than country B.
• B) The population of country B will grow more rapidly than country A.
• C) The production possibilities curve (PPC) of country B will shift out more rapidly than the PPC of country A.
• D) The production possibilities curve (PPC) of country A will shift out more rapidly than the PPC of country B.

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Definitions:

War

An organized and often prolonged conflict that is carried out by states or non-state actors, involving large-scale violence and disturbances to social order.

Crimean Peninsula

A major land mass on the northern coast of the Black Sea that is geopolitically significant and was annexed by Russia from Ukraine in 2014, leading to international controversy.

Russia

The largest country in the world by land area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and political influence.

United States

A federal republic in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.