Compare two economies A and B that start out with identical ...

[geodog55]

Compare two economies A and B that start out with identical production possibilities curves. Economy A chooses an efficient point with 6 consumption goods and 3 capital goods, while economy B also chooses an efficient point, but with 4 consumption goods and 5 capital goods. In the future we can predict:
 a. economy A will operate inefficiently.
  b. economy B will operate inefficiently.
  c. economy A and economy B will grow equally fast.
  d. economy A will grow faster than economy B.
  e. economy B will grow faster than economy A.

Question 2

If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
 a. not move.
  b. shift to the left.
  c. shift to the right.
  d. disappear because scarcity ceases to exist.
  e. demonstrate massive job loss for workers.

[sailorcrescent]

Answer to Question 1

e

Answer to Question 2

c

[geodog55]

Thank you

[sailorcrescent]

No problemo