Exhibit 2-4 Production possibilities curve data $$\begin{array} { | l | r | r | r | c | c | }
\hline & { \text { A } } &{ \text { B } } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 10 & 20 & 30 & 40 \
\text { Consumer goods } & 200 & 180 & 140 & 80 & 0 \
\hline
\end{array}$$ In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect

Question

Exhibit 2-4 Production possibilities curve data $$\begin{array} { | l | r | r | r | c | c | } 
\hline & { \text { A } } &{ \text { B } } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 10 & 20 & 30 & 40 \
\text { Consumer goods } & 200 & 180 & 140 & 80 & 0 \
\hline
\end{array}$$ In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect

Quizplus · Accepted Answer

Choosing production possibility D over B means the economy is producing more capital goods (30 vs. 10) and fewer consumer goods (80 vs. 180). More capital goods can lead to more growth in the future because capital goods are investments in the economy's productive capacity.

Exhibit 2-4 Production Possibilities Curve Data In Exhibit 2-4, If the Economy Chooses Production Possibility D