Use the following production possibilities curve.

-If the economy were growing, the production possibilities curve would:
A) remain in its current position.
B) shift inward to the left.
C) shift outward to the right.
D) become perfectly horizontal.

Question

Use the following production possibilities curve.

-If the economy were growing, the production possibilities curve would:
A) remain in its current position. 
B) shift inward to the left. 
C) shift outward to the right. 
D) become perfectly horizontal.

Quizplus · Accepted Answer

When the economy grows, it means that the total output of goods and services increases. This growth allows for the expansion of production possibilities, which is represented by the production possibilities curve shifting outward to the right. This shift indicates that the economy can produce more of both goods (or all goods in a more complex model) than it could before the growth.

Use the Following Production Possibilities Curve