Exhibit 2-17 Production possibilities curve
In Exhibit 2-17, if countries A and B currently have the same production possibilities curve (PPC) as given in the figure, but this year country A locates at point A on its PPC and country B locates at point B on its PPC, then country A:
A. is more efficient than country B.
B. will grow at a faster rate than country B.
C. will grow at a slower rate than country B.
D. is producing more capital goods than country B.
Answer: C
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