Refer to the information provided in Figure 31.1 below to answer the question(s) that follow. Figure 31.1 -Refer to Figure 31.1. Economic growth is represented by A) a movement from Point A to Point B along ppf₁. B) a movement from Point B to Point C. C) a movement from Point B to Point A. D) a shift in the production possibilities frontier from ppf₂ to ppf₁.

Question

Quizplus · Accepted Answer

Economic growth is represented by a movement from Point B to Point C, which is an outward shift of the production possibilities frontier (ppf) to ppfS2U2B12S2U2B0 due to an increase in resources or technology. A movement from Point A to Point B along ppf₁ represents a change in the allocation of resources, while a shift in the ppf from ppf₂ to ppf₁ represents a decrease in resources or technology.

Refer to the Information Provided in Figure 31