Senator Borman interjects the following comment after the statements by Senators Creighton and Long reported in Problems 2-10 and 2-11: " In fact, both of my esteemed colleagues are wrong, because an u n acceptably large portion of our nation's resources is currently unemployed ." Of the labeled points on the diagram, which one is consistent with Senator Barman's position?

Problem 2-10

During a debate on the floor of the U.S. Senate, Senator Creighton states, "Our nation should not devote so many of its fully employed resources to producing capital goods because we already are not producing enough consumption goods for our citizens."
Compared with the other labeled points on the diagram, which on e could be consistent with the current product ion combination choice that Senator Creighton believes the nation has made?

Problem 2-11

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?

Transcribed Image Text:

Capital Goods B Consumption Goods