Politics

Question

AUTO

10. Use the following diagram to answer the next question.

A

Capital

Goods

B

C

Consumer

Goods

Assume a nation's current production possibilities are represented by the curve B in the above diagram.

Economic growth would best be shown by a

A. shift in the curve from B to C.

B. shift in the curve from B to A.

C. movement from point y to point z

D. movement from point z to point y.

Answer

A. shift in the curve from B to C.

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Economic growth would best be shown by a shift in the curve from B to C, which would indicate an increase in the production of both capital and consumer...