Compare Two Economies a and B That Start with Identical

Multiple Choice

Compare two economies A and B that start with identical production possibilities curves. Both are fully employed. Economy A chooses to produce 6 consumption goods and 3 capital goods, while economy B chooses 4 consumption goods and 5 capital goods. This information suggests that

A) economy A is producing less efficiently than economy B
B) economy B is producing less efficiently than economy A
C) economy A and economy B, although producing different combinations, grow at the same rate because they are both fully employed
D) economy A's growth rate will be higher than economy B's
E) economy B's growth rate will be higher than economy A's