-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,which is France's most likely future PPF?
A) PPF₂
B) PPF₁
C) PPF₀
D) Either PPF₀ or PPF₁
E) None of the above because economic growth will not happen in India.

Question

-Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,which is France's most likely future PPF?
A) PPF₂ 
B) PPF₁ 
C) PPF₀ 
D) Either PPF₀ or PPF₁ 
E) None of the above because economic growth will not happen in India.

Quizplus · Accepted Answer

If France is currently producing at a point that allows for investment in capital goods or technology, it is likely to experience economic growth, shifting its PPF outward to PPF₁.

-Suppose India and France Have the Same PPF,shown in the Figure