Question

During a debate on the floor of the U.S. Senate, Senator Creighton states, “Our nation should not devote so many of its fully employed resources to producing capital goods because we already are not producing enough consumption goods for our citizens.” Compared with the other labeled points on the diagram, which one could be consistent with the current product combination choice that Senator Creighton believes the nation has made?

Short answer

Point C is the current product combination choice that Senator Creighton believes the nation has made.

Step-by-step solution

Step 1. Given Information.

The data for Capital goods and consumption goods is,

Step 2. The combination.

Point C is the current product combination choice that Senator Creighton believes the nation has made. The point shows the combination at which the economy is fully efficient in the production of consumption goods and less in the production of capital goods.