Multiple Choice
Is increased capital spending the only way for an economy to expand its production possibilities frontier?
A) No, an economy can also expand by invention and innovation.
B) No, an economy can also grow by investment instead of capital spending.
C) Yes, more capital is the only way to expand its production possibilities frontier.
D) Yes, although more capital clearly has a high opportunity cost.
E) Yes, because capital is the only constraining resource that limits growth.
Correct Answer:
Verified
Correct Answer:
Verified
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