Question

Two​ countries, Alpha and​ Beta, have identical production possibilities frontiers. What is the outcome if Alpha produces at point A and Beta produces at point B​?

Answer 1

Answer:

C.) Alpha consumes more than Beta today, but it will grow slower than Beta.

Explanation:

In the case when the two countries i.e. Alpha and beta have the same kind of production probabilities so the outcome when the alpha  produced at point A while beta produced at point b is that the alpha consumers more than beta but the growth is slow as compared to beta because the beta is the point where there is a large capital but the less consumption. And, when there is a more capital goods so the growth if we compared with the alpha growth