At which point is the country's future growth rate likely to be the highest? Briefly explain why. A. Point Z because it is where resources are saved for investments. B. Point Y because it is where the most resources are used to produce consumption goods. C. Point X because it is an efficient point where a mix of capital and consumption goods are produced. D. Point V because it is where the production possibilities frontier will shift with growth. E. Point W because it is where the most resources are used to produce capital goods.

The correct answer is: **E. Point W because it is where the most resources are used to produce capital goods.** **Explanation:** Producing capital goods (such as machinery, infrastructure, and technology) involves investing resources today to enhance a country's productive capacity for the future. When a country allocates a significant portion of its resources to capital goods, it builds a stronger foundation for sustained economic growth. This investment leads to increased productivity, innovation, and the ability to produce more goods and services over time. In contrast: - **Option A** mentions saving for investments, which is important, but actively producing capital goods (as in Option E) directly translates savings into tangible investments that drive growth. - **Option B** focuses on consumption goods, which can boost current economic activity but may limit future growth if not balanced with investment. - **Option C** discusses an efficient mix, which is beneficial for balanced growth but may not maximize future growth rates. - **Option D** refers to the production possibilities frontier (PPF) shifting, which is a result of growth rather than the cause of higher growth rates. Therefore, **Point W** is where the highest future growth rate is likely to occur because maximizing the production of capital goods directly contributes to enhancing the country's long-term productive capacity. **Answer:** E. Point W because it is where the most resources are used to produce capital goods.