-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 ________.
A) PPF1; PPF1
B) PPF2; PPF2
C) PPF0; PPF0
D) PPF2; PPF1
E) PPF1; PPF2

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 ________ and France's most likely future PPF is ________.
A) PPF1; PPF1 
B) PPF2; PPF2 
C) PPF0; PPF0 
D) PPF2; PPF1 
E) PPF1; PPF2

Quizplus · Accepted Answer

India's future PPF is likely to shift outward to PPF2 if it is currently producing more capital goods, which suggests investment in future production capabilities. France's future PPF might shift to PPF1 if it is producing more consumer goods, indicating less investment in future production capabilities compared to India.

-Suppose India and France Have the Same PPF,shown in the Figure