Consider a PPF with Consumption Goods on the Horizontal Axis

question 12

Multiple Choice

Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis.If the country operates on its PPF near its ________ axis,this country ________.

• A) vertical; will experience greater economic growth
• B) vertical; will not face opportunity costs
• C) horizontal; will have a larger chance at economic growth
• D) horizontal; faces larger trade offs
• E) vertical; is operating at an inefficient point

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