Asked by
Mushtaq Ahmad
on Dec 08, 2024
Verified
Consider two countries, Estonia and Ukraine. Estonia devotes a larger portion of its production to capital. All other things equal, which of the following statements is most likely true?
A) Estonia is a poorer country than Ukraine.
B) Estonia will move up its production possibility curve faster than Ukraine.
C) Estonia's production possibility frontier will shift up and out farther and faster than Ukraine's.
D) Ukraine is producing inside its production possibility frontier, whereas Estonia is producing at a point on its production possibility frontier.
Production Possibility
Represents various combinations of amounts of two or more goods or services that can be produced within a given time period, with a given amount of resources, and with technology constraints.
Capital
Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts as well as the physical factors of production.
- Differentiate between capital goods and consumer goods and their implications for an economy’s future.
Verified Answer
AT
Learning Objectives
- Differentiate between capital goods and consumer goods and their implications for an economy’s future.