If country a allocates more resources to producing capital goods than does country b, _________.

a. country a's production possibilities shrink more this year than country b's as they cut production of consumption goods

b. country b will have more balanced growth than country a and will incur a lower opportunity cost of growth

c. country a will incur a larger opportunity cost of growth, but it will grow more quickly than country b

d. country a will grow more quickly than country b and will get closer to eliminating scarcity

The more a country invests in one method of production, the higher the opportunity costs will be because the money could be spent on bigger and bigger amounts of alternate goods.

While the opportunity cost is higher, fully investing in producing capital goods will lead to faster growth.

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Ridakalim Ridakalim · Answer 2 · 2022-06-20T10:45:24+02:00

If country a allocates more resources to producing capital goods than does country b, then country a will incur a larger opportunity cost of growth, but it will grow more quickly than country b

Why will country a incur large opportunity cost of growth but still grow more quickly than country b?

Capital goods are assets that are used to create goods and services for consumer goods, they are the principal goods and are used by other businesses to produce consumer goods.

Examples of capital goods are buildings, land, machinery, equipment, etc.

Therefore, when the quantity of capital increases the economy grows but still there are challenges faced regarding the scarcity and larger opportunity cost.

Therefore, if country a allocates more resources to producing capital goods than does country b, then country a will incur a larger opportunity cost of growth, but it will grow more quickly than country b (option c).

To learn more about capital goods, refer

https://brainly.com/question/1060074

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