An increase in capital goods and a decrease in consumer goods will:
A) eventually lead to a shift to the right of the production possibilities curve.
B) increase a nation's capacity to produce.
C) lead to more rapid economic growth.
D) do all of the above.

Question

Quizplus · Accepted Answer

An increase in capital goods and a decrease in consumer goods will lead to an increase in a nation's capacity to produce, which eventually leads to a shift to the right of the production possibilities curve. This, in turn, leads to more rapid economic growth. Therefore, all of the above options are correct.

An Increase in Capital Goods and a Decrease in Consumer