If a country moves from a point below the production possibilities curve to a point on the curve,it is experiencing
A)Increased capacity utilization.
B)Expanded capacity.
C)Long-run growth.

Question

Quizplus · Accepted Answer

Moving from a point below the production possibilities curve to a point on the curve implies that the country is producing at a higher level of output than before, meaning that it is utilizing more of its existing resources and capabilities. This represents an increase in capacity utilization, but not necessarily an expansion in capacity or long-run growth, as those would involve an increase in the available resources and capabilities themselves.

If a Country Moves from a Point Below the Production