# When an economy shifts away from the production of consumer goods and toward the production of...

## Question:

When an economy shifts away from the production of consumer goods and toward the production of capital goods, for the average worker this trade-off means

A. a higher standard of living.

B. longer working hours.

C. a lower savings rate (as a percentage of income).

D. more leisure time.

E. more disposable income.

## PPC:

The combinations of various inputs that are used in the manufacturing process are known as the production set. The curve representing the production set is known as the production possibility curve.

## Answer and Explanation: 1

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View this answerThe correct answer is **E. more disposable income,**

This is because the employment of more capital goods leads to an increase in the output level...

See full answer below.

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Chapter 2 / Lesson 2Discover the supply curve definition in microeconomics and the examples. Also, learn about shifts in the supply curve and examples of factors causing the shifts.

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