The production possibilities curve demonstrates the basic economic principle that:
A) market-based economies are more efficient.
B) supply will determine demand in the economy.
C) the production of more capital goods this year will cause the economy to produce less consumption goods next year.
D) to produce more of any one thing, assuming full employment, the economy must produce less of something else.
E) to produce more consumption goods this year requires the production of more capital goods this year.
Correct Answer:
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