could someone help me solve this problem? The production possibilities frontier,
ID: 1155420 • Letter: C
Question
could someone help me solve this problem?
The production possibilities frontier, below, represents production choices for the hypothetical island nation of Mauistan in the short-run Which point is likely to result in the most economic growth for Mauistan? Capital goods Which of the following explains the tradeoff between today's consumption and future consumption? tion of more capital goods and fewer consumer O The goods today increases economic growth and future consumption The tion of more capital goods and fewer consumer O goods today decreases economic growth and future consumptionn The goods today increases economic growth and future consumption The goods today increases economic growth and future consumption tion of more consumer goods and fewer capital Consumer goods tion of more capital goods and more consumer Previous Check Answer NexExit HintExplanation / Answer
Answer of the first question : Point A
Answer of the Second question : The production of more capital goods and fewer consumer goods today increases economic growth and future consumption.
Explanation :
Production of more capital goods in the short run will increase economic growth . So available resources should be diverted towards the production of more capital goods as compared to consumer goods. In the long run , it helps for the more production and consumption of consumer goods which will lead economic growth.
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