Asked by Nicole Batenhorst on May 01, 2024
Verified
If the economy were producing at point E and moves to point D,
A) resources will shift from producing capital goods to producing consumer goods.
B) resources will shift from producing consumer goods to producing capital goods.
C) more capital goods can be produced without any sacrifice in consumer goods production.
D) more consumer goods can be produced without any sacrifice in capital goods production.
Capital Goods
Long-lasting goods purchased or used by businesses to produce goods or services and not intended for final consumption.
Consumer Goods
Products and services that are consumed by individuals or households to satisfy their needs or wants.
Producing
The process of creating, manufacturing, or constructing goods and services for consumption or use.
- Acquire a comprehension of the essential features of production possibilities curves and the definition of opportunity costs.
- Distinguish between efficient, inefficient, and unattainable points on the production possibilities frontier.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
B
Explanation :
Moving from point E to point D on the production schedule indicates a shift towards producing more capital goods (from 4 to 8 units) and fewer consumer goods (from 112 to 96 units), implying that resources are being reallocated from consumer goods production to capital goods production.
Learning Objectives
- Acquire a comprehension of the essential features of production possibilities curves and the definition of opportunity costs.
- Distinguish between efficient, inefficient, and unattainable points on the production possibilities frontier.