Exhibit 2-18 Production Possibilities Curves

Exhibit 2-18 Production possibilities curves

-In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country:

A) is producing the same number of capital goods in both years.
B) is producing the same number of consumption goods in both years.
C) has shown no growth between Year X and Year Y.
D) has higher unemployment in Year X than in Year Y.