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Unformatted text preview: are efficient with our use of resources then we are producing a combination of consumer and capital products shown by a point on the production possibilities curve. Inefficiency is shown by a point inside the curve. A point outside is a combination of output which is currently unobtainable. However, the greater the investment in capital production, then the greater the rate of economic growth and therefore the larger the rightward shifts of the production possibilities curve and the sooner the nation will be able to produce any point which is currently outside its curve. But, the opportunity cost of greater rates of economic growth over time is foregone consumer goods production today, and therefore current satisfaction....
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This note was uploaded on 03/19/2011 for the course ECON 302 taught by Professor Wroee during the Spring '08 term at American River.
- Spring '08
- Opportunity Cost