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 in the future?

Luxemberg

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.

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