Exhibit 3-4
-Refer to Exhibit 3-4. Moving from Point ____ to Point ____ will result in an increase in the quantity of both capital and consumption goods produced this period.

Question

​Exhibit 3-4 
-Refer to Exhibit 3-4. Moving from Point ____ to Point ____ will result in an increase in the quantity of both capital and consumption goods produced this period.

Quizplus · Accepted Answer

Moving from Point E to Point D will result in an increase in the quantity of both capital and consumption goods produced this period. At Point E, the economy is operating inside its production possibilities frontier, indicating that it is not using all its resources efficiently. Moving to Point D allows the economy to utilize more of its resources and shift the production possibilities frontier outwards, resulting in an increase in the quantity of both capital and consumption goods produced.

​Exhibit 3-4 -Refer to Exhibit 3-4. Moving from Point ____ to Point

Exhibit 3-4 -Refer to Exhibit 3-4. Moving from Point ____ to Point