Question

Suppose that lichtenstein and luxembourg currently have identical production possibilities frontiers but that lichtenstein devotes only 5 percent of its resources to producing capital goods over each of the next 10​ years, whereas luxembourg devotes 30 percent. which country is likely to experience more rapid economic growth loading... in the​ future?

Answer 1

Luxemberg

Step-by-step explanation:

Suppose that lichtenstein and luxembourg currently have identical production possibilities frontiers but that lichtenstein devotes only 5 percent of its resources to producing capital goods over each of the next 10​ years, whereas luxembourg devotes 30 percent.

Luxemberg is likely to experience more rapid economic growth in the​ future. Hence, less resoucres are devoted in producing capital goods results in slow economic growth of the country.