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Chapter 2: Q 11 (page 46)

In response to Senator Creighton’s statement reported in Problem 2-10, Senator Long replies, “We must remain at our current production combination if we want to be able to produce more consumption goods in the future.” Of the labeled points on the diagram, which one could depict the future production combination Senator Long has in mind?

Short Answer

Expert verified

Point D is the future production combination Senator Long has in mind.

Step by step solution

01

Step 1. Given Information

The graph for the capital goods and the consumer goods is,

02

Step 2. Point.

Point D is the future production combination Senator Long has in mind because that is the unattainable point in the current situation.

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