Both Country 1 and Country 2 Are Located on Their

question 73

Multiple Choice

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) ,but country 1 produces twice the output that country 2 produces.It follows that

• A) country 1's PPF lies further to the right than country 2's PPF.
• B) country 1 has a smaller population than country 2.
• C) country 1 has a bigger population than country 2.
• D) country 1 is efficient and country 2 is inefficient.
• E) none of the above

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