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The Production Possibilities Curve for Capital and Consumer Goods Is

Question 17

Multiple Choice

The production possibilities curve for capital and consumer goods is concave to the origin because _____


A) of decreasing opportunity costs of production.
B) resources are not perfectly adaptable to the production of both goods.
C) consumer goods and capital goods equally contribute to economic growth.
D) the level of technology along the frontier is assumed to vary.
E) of constant returns to scale.

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