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Both Country 1 and Country 2 Are Located on Their

Question 16

Multiple Choice

Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods,but country 1 produces twice the output of both types of goods compared to country 2.It follows that


A) country 1's PPF lies further to the right than country 2's PPF.
B) country 1 has a smaller population than country 2.
C) country 1 has a bigger population than country 2.
D) country 1 is efficient and country 2 is inefficient.
E) none of the above

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