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-Refer to Figure 9-10

Question 135

Multiple Choice

  -Refer to Figure 9-10.Assume that A represents the minimum level of investment necessary to increase capital per worker and B represents the minimum production of consumer goods acceptable to the population.If the economy is currently at point D and if the population continues to grow, A)  the production possibilities frontier will shift outward very rapidly B)  the production possibilities frontier will shift outward,but not fast enough to increase living standards C)  the economy will move to point C on the production possibilities frontier D)  the economy will remain at point D on the production possibilities frontier E)  the production possibilities frontier will shift inward and living standards will deteriorate
-Refer to Figure 9-10.Assume that A represents the minimum level of investment necessary to increase capital per worker and B represents the minimum production of consumer goods acceptable to the population.If the economy is currently at point D and if the population continues to grow,


A) the production possibilities frontier will shift outward very rapidly
B) the production possibilities frontier will shift outward,but not fast enough to increase living standards
C) the economy will move to point C on the production possibilities frontier
D) the economy will remain at point D on the production possibilities frontier
E) the production possibilities frontier will shift inward and living standards will deteriorate

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