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 movement from a point inside the boundary such as C to the boundary.
B)a single point such as A on the boundary.
C)a point like D outside the boundary.
D)the movement between points on a given boundary.
E)an outward shift of the boundary,for example from PPB1 to PPB2.

Question

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 movement from a point inside the boundary such as C to the boundary. 
B)a single point such as A on the boundary. 
C)a point like D outside the boundary. 
D)the movement between points on a given boundary. 
E)an outward shift of the boundary,for example from PPB1 to PPB2.

Quizplus · Accepted Answer

The growth in the country's productive capacity is illustrated by an outward shift of the production possibilities boundary, for example from PPB1 to PPB2. This shift represents an increase in the country's resources, technology, or both, enabling it to produce more goods and services than before.

The Diagram Below Shows Two Production Possibilities Boundaries for Country