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

Respuesta :

Answer:

B)The U.S.'s production possibilities curve to shift outward faster than Nepal's

Explanation:

The production possibilities curve can be regarded as a graph which display

various combinations of output which can be gotten base on current resources and technology. It gives illustration about scarcity and tradeoffs. In the scenerio described in the question,The U.S.'s production possibilities curve to shift outward faster than Nepal's