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Is Increased Capital Spending the Only Way for an Economy

Question 113

Multiple Choice

Is increased capital spending the only way for an economy to expand its production possibilities curve?


A) ​No, an economy can also expand by invention and innovation.
B) ​No, an economy can also grow by reallocating more resources toward the production of consumption goods.
C) ​Yes, more capital investment is the only way to expand production possibilities.
D) ​Yes, although increased production of capital clearly increases the opportunity cost.

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