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

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

B) As an economist you are asked to suggest a different 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 explain the costs of moving from 'Point A' to 'Point C'.