If country a allocates more resources to producing capital goods than does country b, _________.

Business

1 answer:

Sunny_sXe [5.5K]2 years ago

7 0

c. Country A will incur a larger opportunity cost of growth, but it will grow more quickly than country B.

The more a country invests in one method of production, the higher the opportunity costs will be because the money could be spent on bigger and bigger amounts of alternate goods.

While the opportunity cost is higher, fully investing in producing capital goods will lead to faster growth.

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If country a allocates more resources to producing capital goods than does country​ b, _________.

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