Exhibit 2-8
-Current production at which labeled point in Exhibit 2-7 would lead to the largest outward shift in the production possibilities frontier in a later year?
A) point a because this point represents a greater consumption level than point b
B) point b because this point represents greater total production than the other two points
C) point c because this point represents a greater consumption level than the other two points
D) point b because this point represents greater production of capital than point c
E) point c because this point represents greater production of capital than the other two points
Correct Answer:
Verified
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