Which of the following applies to economic growth?
I. Economic growth allows people to buy more goods and services.
II. Economic growth is the expansion of the economy's production possibilities.
III. Economic growth is represented by a movement from a point inside the production possibilities curve to a point on the curve.

Question

Which of the following applies to economic growth? 
I. Economic growth allows people to buy more goods and services.
II. Economic growth is the expansion of the economy's production possibilities.
III. Economic growth is represented by a movement from a point inside the production possibilities curve to a point on the curve.

Quizplus · Accepted Answer

Economic growth is defined as the expansion of an economy's production possibilities, allowing people to buy more goods and services. However, moving from a point inside the production possibilities curve to a point on the curve represents achieving full efficiency, not economic growth.

Which of the Following Applies to Economic Growth