The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.Growth in the country's productive capacity is illustrated by A)a point like D outside the boundary. B)a movement from a point inside the boundary such as C to the boundary. C)the movement between points on a given boundary. D)a single point such as A on the boundary. E)an outward shift of the boundary,for example from PPB₁ to PPB₂.

Question

Quizplus · Accepted Answer

Growth in the country's productive capacity is shown by an outward shift of the production possibilities boundary. Therefore, the best choice is E which describes an outward shift of the boundary from PPB₁ to PPB₂.

The Diagram Below Shows Two Production Possibilities Boundaries for Country