Figure 8-2
-Refer to Figure 8-2. Assume that a nation is operating on production possibilities curve CD. Economic growth is best illustrated by a

Question

Figure 8-2 
-Refer to Figure 8-2. Assume that a nation is operating on production possibilities curve CD. Economic growth is best illustrated by a

Quizplus · Accepted Answer

Economic growth is illustrated by an increase in production possibilities, which is represented by a shift outward of the production possibilities curve. Option A shows a shift to curve AB, but that is a movement towards a lower production capacity. Option C is simply a movement along the same curve, not a shift to a higher level. Option D shows movement from a point inside the curve to a point on the curve, but it doesn't show an increase in production possibilities. Option B shows a shift from curve CD to curve EF, which represents an increase in production capacity and therefore, represents economic growth.

Figure 8-2 -Refer to Figure 8-2. Assume That a Nation Is Operating