1.Refer to figure 1.6, Present Choices and Future Locations of Production Possibilities

1.    Refer to figure 1.6, Present Choices and Future Locations of Production Possibilities

Curves:

·      Which economy, Presentville or Futureville, will experience greater growth?

·      Why?

·      How does a societies’ choice between consumer goods and capital goods affects its potential for economic growth?

Goods for the futureFuturecurveCurrentcurveOGoods for the present(a)Presentville