Economic growth can be shown as a movement from a point on one production possibilities curve
to a point on a curve located farther from the origin.

Question

Quizplus · Accepted Answer

Economic growth means an increase in the production capacity of an economy. This means that the economy can produce more goods and services than before. This increase in production capacity can be represented by a shift of the production possibilities curve to the right, which means that the economy can produce more of all goods and services. Therefore, economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Economic Growth Can Be Shown as a Movement from a Point