Consider a PPF with Consumption Goods on the Horizontal Axis

question 218

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

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