In general, if country A is accumulating capital at a faster rate than country B, then country A
A)is using a larger proportion of resources to produce consumption goods.
B)will soon have a comparative advantage in the production of most goods.
C)will have more unemployment than country B.
D)will have a production possibilities frontier that is shifting outward faster than country B's.
E)will have a higher rate of inflation than country B.

Question

Quizplus · Accepted Answer

Accumulating capital at a faster rate means that country A is investing more resources in its production capabilities, which will lead to an outward shift of its production possibilities frontier at a faster rate than country B. This implies that country A will be able to produce more goods in the long run and have a higher potential for economic growth.

In General, If Country a Is Accumulating Capital at a Faster