A movement from point C to point E in Figure 17.5 illustrates
A)A decrease in the capacity to produce.
B)The short-run opportunity cost of achieving long-run economic growth.
C)An increase in the capacity to produce.
D)An increase in the unemployment rate.

Question

A movement from point C to point E in Figure 17.5 illustrates
A)A decrease in the capacity to produce. 
B)The short-run opportunity cost of achieving long-run economic growth. 
C)An increase in the capacity to produce. 
D)An increase in the unemployment rate.

Quizplus · Accepted Answer

The movement from point C to point E in Figure 17.5 illustrates an increase in the capacity to produce, as the production possibilities frontier (PPF) shifts outward. This means that the economy is able to produce more goods and services, indicating economic growth.

A Movement from Point C to Point E in Figure