Using a production possibilities frontier, economic growth is illustrated by a
A) rightward shift of the curve.
B) point inside the curve.
C) movement from one point on the curve to another point on the curve.
D) point on the curve.

Question

Quizplus · Accepted Answer

Economic growth is illustrated by an increase in the economy's ability to produce goods and services over time. This is represented by a rightward shift of the production possibilities frontier. It signifies an increase in the availability of resources, improvements in technology, and/or improvements in the efficiency of resource allocation, enabling more output to be produced with the same inputs, or the same output to be produced with fewer inputs.

Using a Production Possibilities Frontier, Economic Growth Is Illustrated by a