IF AN ECONOMY THAT PRODUCES CAPITAL AND CONSUMER GOODS IS OPERATIN...

89. If an economy that produces capital and consumer goods is operating at a point on its production possibilities curve:it is achieving full employment but not full production.it is achieving full production but not full employment.→ more capital goods can be produced only at the cost of some consumer goods.the economy is incapable of achieving significant economic growth. AACSB: AnalyticBlooms: RememberDifficulty: 2 MediumLearning Objective: 01-05 Apply production possibilities analysis; increasing opportunity costs; and economic growth.Multiple Choice Question Topic: Production possibilities model