When an economy sacrifices production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will

Question

Quizplus · Accepted Answer

When an economy sacrifices production of consumption goods to produce more capital goods, it is investing in its long-term growth potential. This shift reflects an outward shift and an increase in the production possibilities of the economy. Therefore, the correct option is A.

When an Economy Sacrifices Production of Consumption Goods to Produce