0 10 20 30 40 50 REFR 37. Assuming robots represents capital goods and beer consumer goods, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from points (d) to (e) to (f), what can you conclude about these countries? O a) Country 1 has a higher savings rate Ob) Country 2 starts out with a higher standard of living O c) Country 2 has a higher rate of growth O d) Both (a) and (b) are correct Oe) None of the above
0 10 20 30 40 50 REFR 37. Assuming robots represents capital goods and beer consumer goods, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from points (d) to (e) to (f), what can you conclude about these countries? O a) Country 1 has a higher savings rate Ob) Country 2 starts out with a higher standard of living O c) Country 2 has a higher rate of growth O d) Both (a) and (b) are correct Oe) None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 37
ROBOTS
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BEFR
37. Assuming robots represents capital goods and beer consumer goods, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from points (d) to (e) to (f), what can you
conclude about these countries?
a) Country 1 has a higher savings rate
b) Country 2 starts out with a higher standard of living
c) Country 2 has a higher rate of growth
d) Both (a) and (b) are correct
e) None of the above
Expert Solution
Step 1: Production Possibility Curve
The production possibility frontiers show the different combinations of two goods that can be produced with available resources. All points above the PPF are not attainable. All points along the PPF are efficient. All the points that lie below the PPF, are inefficient.
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