Exhibit 2-17 Production Possibilities Curve

Exhibit 2-17 Production possibilities curve

In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:

A) is more efficient than country B.
B) will grow at a faster rate than country B.
C) will grow at a slower rate than country B.
D) is producing more capital goods than country B.