Economic growth would best be represented by a
A)Shift outward of the production possibilities curve.
B)Shift inward of the production possibilities curve.
C)Movement from inside the production possibilities curve to a point on the production possibilities curve.
D)Movement from the production possibilities curve to a point inside the production possibilities curve.

Question

Quizplus · Accepted Answer

Economic growth is indicated by an increase in a country's production capacity. When the production possibilities curve shifts outward, it means that the country has expanded its capacity to produce more goods and services, which is a sign of economic growth. Thus, the correct answer is A - shift outward of the production possibilities curve.

Economic Growth Would Best Be Represented by a