Asked by
Latonya Biggers
on Nov 05, 2024
Verified
An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a small amount of capital goods and a large amount of consumer goods. This is most likely to be a
A) "poor" country because such a nation has difficulty devoting many resources to the production of capital goods.
B) "rich" country because such a nation can afford to sacrifice.
C) country with a free market.
D) country with a command economy.
Capital Goods
Long-lasting goods acquired by businesses to produce goods or services, encompassing items like machinery, tools, and buildings.
Consumer Goods
Products that are purchased and used by individuals for personal or household consumption.
Production Possibility Frontier
The Production Possibility Frontier is a curve depicting all maximum output possibilities for two goods, given a set of inputs.
- Analyze the role of capital goods versus consumer goods in determining a country’s economic status.
Verified Answer
PP
Learning Objectives
- Analyze the role of capital goods versus consumer goods in determining a country’s economic status.