In order for Ethiopia to increase its future economic growth, it must choose a point that is:
A) below its production possibilities curve.
B) further along on its production possibilities curve toward the capital goods axis.
C) further along on its production possibilities curve toward the consumption goods axis.
D) further along on its production possibilities curve away from the population axis.
E) above its production possibilities curve.

Question

Quizplus · Accepted Answer

Choosing a point that is further along on its production possibilities curve toward the capital goods axis would mean that Ethiopia is investing more in the production of capital goods (such as machinery and technology) rather than focusing solely on the production of consumer goods. This would allow for increased productivity and efficiency in the long run, leading to future economic growth.

In Order for Ethiopia to Increase Its Future Economic Growth