The Production Possibility Frontier Can Be Used to Show Economic

Multiple Choice

The production possibility frontier can be used to show economic growth as a sustained long-run increase in GDP. What does each panel shows about capital goods and growth of the economy?

A) Panel A: fewer capital goods and rapid growth; Panel B: more capital goods and slower growth
B) Panel A: more capital goods and slower growth; Panel B: fewer capital goods and rapid growth
C) Panel A: more capital goods and rapid growth; Panel B: fewer capital goods and slower growth
D) Panel A: fewer capital goods and slower growth; Panel B: more capital goods and rapid growth