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-Assume That Our National Economy Is Operating at a Point

Question 95

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-Assume that our national economy is operating at a point on its bowed-out production possibilities curve. According to the production possibilities schedule in Table 1.4, if our nation produces more consumer goods (good A), then

-Assume that our national economy is operating at a point on its bowed-out production possibilities curve. According to the production possibilities schedule in Table 1.4, if our nation produces more consumer goods (good A) , then A) it must sacrifice larger and larger amounts of investment goods (good B) to do so. B) the value of investment goods that must be forgone decreases. C) the resources transferred will be increasingly efficient in producing those consumer goods. D) it must have a comparative advantage in the production of consumer goods (good A) . E) we will experience a greater rate of economic growth.
-Assume that our national economy is operating at a point on its bowed-out production possibilities curve. According to the production possibilities schedule in Table 1.4, if our nation produces more consumer goods (good A) , then


A) it must sacrifice larger and larger amounts of investment goods (good B) to do so.
B) the value of investment goods that must be forgone decreases.
C) the resources transferred will be increasingly efficient in producing those consumer goods.
D) it must have a comparative advantage in the production of consumer goods (good A) .
E) we will experience a greater rate of economic growth.

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