In the production possibilities framework,economic growth is depicted by the PPF
A) shifting leftward (toward the origin).
B) shifting rightward (away from the origin).
C) becoming a straight line rather than a bowed outward curve.
D) becoming bowed outward rather than a straight line.

Question

Quizplus · Accepted Answer

Economic growth is depicted by the PPF shifting rightward (away from the origin) because it represents an increase in the economy's capacity to produce goods and services. This can occur due to factors such as technological advances, increased capital investment, or an increase in the labor force. As a result, the economy can produce more goods and services than before, causing the PPF to shift outward.

In the Production Possibilities Framework,economic Growth Is Depicted by the PPF