Economic growth

Question

Economic growth

Quizplus · Accepted Answer

Economic growth shifts the production possibilities frontier (PPF) outward, meaning that a nation can produce more goods and services than before without sacrificing the production of other goods and services. Economic growth can lead to job creation, so option A is incorrect. Economic growth can also make it easier for a nation to produce on its PPF as technology advances and efficiency increases, so option B is incorrect. However, economic growth does come at an opportunity cost – the resources used for one good or service cannot be used for another – so option D is also incorrect.

Economic Growth