Economic growth can be portrayed as

Question

Quizplus · Accepted Answer

Economic growth represents an increase in the potential production capacity of an economy. This can be depicted as an outward shift of the production possibilities curve, indicating that more goods and services can be produced than before without sacrificing the production of other goods and services. Option B is incorrect because an inward shift of the production possibilities curve signifies a decrease in the potential production capacity of an economy. Option C is incorrect because movement from a point inside a production possibilities curve to another point on the same curve represents an increase in efficiency but not economic growth. Option D is incorrect because economic growth is not limited to movement along a fixed production possibilities curve; it represents an increase in the potential production capacity of the economy.

Economic Growth Can Be Portrayed as