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1.1.4 Production possibility frontiers

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Question 1

Which one of the following is the most likely long-run consequence of a country reallocating its scarce resources from the production of consumer goods to capital goods?

A contraction along the existing demand curve for public goods

An outward shift of the production possibility frontier in the future

An immediate increase in the current standard of living

A permanent decrease in productive efficiency

1.1.4 Production possibility frontiers Questions

  1. A Level
  2. /Economics
  3. /1.1.4 Production possibility frontiers