Economic growth is shown on the production possibilities frontier as

Question

Quizplus · Accepted Answer

Economic growth is shown on the production possibilities frontier as an outward shift in the PPF because it means that the economy can produce more goods and services with the same resources or the same amount of goods and services with fewer resources. This indicates an increase in the productive capacity of the economy, which is represented by an outward shift in the PPF.

Economic Growth Is Shown on the Production Possibilities Frontier as