-In 2006, Country X and Country Y had the same production possibilities, illustrated in the figure above. Country X chose to produce at point A, while country Y chose to produce at point B. In 2012, most likely, Country X will be at point such as __________while Country Y will be at point such as__________ .
A) B; A
B) N; Q
C) Q; N
D) A; B

Question

-In 2006, Country X and Country Y had the same production possibilities, illustrated in the figure above. Country X chose to produce at point A, while country Y chose to produce at point B. In 2012, most likely, Country X will be at point such as __________while Country Y will be at point such as__________ .
A) B; A 
B) N; Q 
C) Q; N 
D) A; B

Quizplus · Accepted Answer

Country X, by choosing point A, likely focused on producing more capital goods, which can lead to economic growth and an outward shift in the production possibilities frontier, reaching a point like N. Country Y, by choosing point B, likely focused on consumer goods, which may not lead to as much growth, keeping it at a point like Q.

-In 2006, Country X and Country Y Had the Same