Suppose That Country a Produces Mostly Consumption Goods and Few

Multiple Choice

Suppose that country A produces mostly consumption goods and few investment goods, while country B produces mostly investment goods with few consumption goods. Other things constant, which of the following is most likely to happen in the future?

A) The per capita income of country A will grow more rapidly than country B.
B) The population of country B will grow more rapidly than country A.
C) The production possibilities curve (PPC) of country B will shift out more rapidly than the PPC of country A.
D) The production possibilities curve (PPC) of country A will shift out more rapidly than the PPC of country B.