Economic growth most likely occurs when
A) a society moves inside its production possibility frontier.
B) a society learns to produce more using existing resources.
C) the society begins to produce the combination of goods society wants most.
D) a society moves along its production possibilities frontier.

Question

Quizplus · Accepted Answer

Economic growth is typically represented by an outward shift in a society's production possibility frontier (PPF), indicating an increase in the capacity to produce. This can occur when a society learns to produce more using existing resources, through improvements in technology, efficiency, or methods of production. Choices A, C, and D describe scenarios of underutilization, changes in preference, and efficient allocation of resources, respectively, but do not directly indicate growth in the economy's overall capacity.

Economic Growth Most Likely Occurs When