Question

Between the US and Nepal, Nepal invests less in new factories and equipment. This will likely...

Between the US and Nepal, Nepal invests less in new factories and equipment. This will likely cause:

Nepal's production possibilities frontier to shift outward faster and the U.S.'s.

Nepal's production possibilities frontier to shift inward faster than the U.S.'s.

The U.S.'s production possibilities frontier to shift outward faster than Nepal's.

The U.S.'s production possibilities frontier to shift inward faster than Nepal's

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Answer #1

"C"

As Nepal is investing less in the capital goods that will shift the PPF of USA outward faster as compared to Nepal who is more consuming. the answer is "C".

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