The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. Growth in the country's productive capacity is illustrated by
A) a movement from a point inside the boundary such as C to the boundary.
B) the movement between points on a given boundary.
C) a point like D outside the boundary.
D) a single point such as A on the boundary.
E) an outward shift of the boundary, for example from PPB1 to PPB2.

Question

The diagram below shows two production possibilities boundaries for Country X.  FIGURE 1- 3
-Refer to Figure 1- 3. Growth in the country's productive capacity is illustrated by
A) a movement from a point inside the boundary such as C to the boundary. 
B) the movement between points on a given boundary. 
C) a point like D outside the boundary. 
D) a single point such as A on the boundary. 
E) an outward shift of the boundary, for example from PPB1 to PPB2.

Quizplus · Accepted Answer

Growth in the country's productive capacity is shown by an outward shift of the production possibilities boundary, as depicted in the diagram by the shift from PPB1 to PPB2. The other options, such as movement from a point inside the boundary or between points on the same boundary, do not necessarily indicate growth in productive capacity.

The Diagram Below Shows Two Production Possibilities Boundaries for Country