Exhibit 2-18  Production Possibilities Curves in Exhibit 2-18, the Production

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.
E) has higher unemployment in Year Y than in Year X.