Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause:
A) Nepal's production possibilities curve to shift outward faster than the U.S.'s.
B) The U.S.'s production possibilities curve to shift inward faster than Nepal's.
C) The U.S.'s production possibilities curve to shift outward faster than Nepal's.
D) Nepal's production possibilities curve to shift inward faster than the U.S's.

Question

Quizplus · Accepted Answer

The U.S. investing more in new factories and equipment will likely lead to faster economic growth, causing its production possibilities curve to shift outward faster than Nepal's.