If an economy is currently producing on its production possibilities curve, a rightward shift of the curve is a necessary but not sufficient condition for economic growth.

Question

Quizplus · Accepted Answer

A rightward shift of the production possibilities curve indicates an increase in the economy's productive capacity, which is a necessary condition for economic growth. However, it is not sufficient because economic growth also requires an increase in actual output, which may not occur automatically with a shift in the curve.

If an Economy Is Currently Producing on Its Production Possibilities