With consumption goods measured on the vertical and capital goods measured on the horizontal axis of a production possibilities curve, for Ethiopia to increase its future economic growth, it must choose a point that is

Question

Quizplus · Accepted Answer

To increase future economic growth, Ethiopia should invest more in capital goods, which are represented on the horizontal axis. Choosing a point further away from the origin on the horizontal axis indicates increased production of capital goods, which can enhance future production capabilities and economic growth.

With Consumption Goods Measured on the Vertical and Capital Goods