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Economics

Draw the probable 'production possibilities curve for an economy which produces 'Capital' goods and 'Consumer' goods.

1. Assuming that the Economy is producing approximately twice the level of customer goods as opened to Capital goods, indentify this production combination on the graph and label it 'Point A'.

2. As an economist you are asked to suggest a dissimilar combination of production in order to promote more growth in the Economy. Identify your choice on the graph and label it 'Point C'. Identify or describe the costs of moving from 'Point A' to 'Point C'.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91227127

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