Suppose there are two economies, Alpha and Beta, which have the same production possibilities curves.If Beta devotes more resources to produce capital goods than consumer goods as compared to Alpha, then in the future
A)Alpha will experience greater economic growth than Beta.
B)Beta will experience greater economic growth than Alpha.
C)Alpha will not be able to achieve full employment or productive efficiency.
D)Beta will not be able to achieve full employment or productive efficiency.

Question

Quizplus · Accepted Answer

By devoting more resources to capital goods, Beta is investing in future production capacity, which typically leads to greater economic growth over time compared to Alpha, which focuses more on consumer goods.

Suppose There Are Two Economies, Alpha and Beta, Which Have