Suppose Freeland produces few consumption goods and many investment goods while Liberty Nation produces few investment goods and many consumption goods. Other things equal, you would expect
A) per capita income to grow more rapidly in Liberty Nation.
B) population to grow faster in Liberty Nation.
C) the production possibilities curve for Freeland will shift out more rapidly than that of Liberty Nation.
D) that if both countries started with identical production possibilities curves, in twenty years, people in Liberty Nation will be able to produce more consumer goods than people in Freeland.
Correct Answer:
Verified
Q161: Exhibit 3-15 Q162: From a point inside the production possibility Q163: Exhibit 3-14 Q164: Draw a picture of a production possibilities Q165: Does economic growth eliminate scarcity? Q167: Which of the following would be most Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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