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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, India's most likely future PPF is _{--------------------}and France's most likely future PPF is_{--------------------}
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Question

- Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, India's most likely future PPF is <sub>--------------------</sub>and France's most likely future PPF is<sub>--------------------</sub> . A) PPF1; PPF1 B) PPF1; PPF2 C) PPF0; PPF0 D) PPF2; PPF2 E) PPF2; PPF1

Quizplus · Accepted Answer

If India's current production point is more focused on capital goods, its future PPF is likely to expand (PPF2). If France's current production point is more focused on consumer goods, its future PPF is likely to remain the same (PPF1).

- Suppose India and France Have the Same PPF, Shown in Shown