An outward shift of the production possibilities frontier
A)reflects economic stability
B)reflects economic growth
C)reflects economic decline
D)does not relate to the state of the economy
E)is always a parallel shift

Question

Quizplus · Accepted Answer

An outward shift of the production possibilities frontier reflects economic growth. This means that the economy is able to produce more goods and services than before, indicating an increase in productivity, technology, and resources.

An Outward Shift of the Production Possibilities Frontier