Answer to Question #160613 in Economics for Anannya Nair

Question

A country has been employing its resources in the ratio of 80% consumer goods production and 20%

capital goods production.

What will be the result if it decides to double its output of capital goods?

Answer 1

The country will use its resources at a ratio of 60% for the production of consumer goods and 40% for the production of capital goods.