Consider a PPF with consumption goods on the horizontal axis and capital goods on the vertical axis.If the country operates on its PPF near its ________ axis,this country ________.
A) vertical; will experience greater economic growth
B) vertical; will not face opportunity costs
C) horizontal; will have a larger chance at economic growth
D) horizontal; faces larger trade offs
E) vertical; is operating at an inefficient point

Question

Quizplus · Accepted Answer

Operating near the vertical axis, where capital goods are plotted, indicates that the country is investing more in capital goods. This investment in capital goods (like machinery, tools, and infrastructure) is crucial for enhancing productivity and, consequently, can lead to greater economic growth.

Consider a PPF with Consumption Goods on the Horizontal Axis