Economic growth can be represented by
A) an inward shift of the production possibilities frontier (PPF).
B) an outward shift of the production possibilities frontier (PPF).
C) a movement down the production possibilities frontier (PPF).
D) a movement up the production possibilities frontier (PPF).

Question

Quizplus · Accepted Answer

Economic growth is represented by an outward shift of the production possibilities frontier (PPF) because it means that a country can produce more goods and services than before without sacrificing the production of other goods and services. An inward shift of the PPF would represent a decrease in production capacity, while a movement down or up the PPF would represent a shift in production towards one good or service over another, but not an increase in overall production capacity.

Economic Growth Can Be Represented by