Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis.If the country operates on its PPF near its ________ axis,this country ________.
A)vertical;is operating at an inefficient point
B)horizontal;will have a larger chance at economic growth
C)vertical;will not face opportunity costs
D)vertical;will experience greater economic growth
E)horizontal;faces larger tradeoffs

Question

Quizplus · Accepted Answer

Operating near the vertical axis means the country is producing more capital goods, which can lead to greater economic growth in the future as capital goods are essential for increasing production capacity.

Consider a PPF with Consumption Goods on the Horizontal Axis