If an economy is growing, then the production possibilities curve would:
A) shift inward (to the left).
B) shift outward (to the right).
C) remain as it is.
D) become vertical.

Question

Quizplus · Accepted Answer

When an economy is growing, it means that the total output of goods and services is increasing. This growth allows for the expansion of production capabilities, which is represented by the production possibilities curve shifting outward (to the right). This shift indicates that the economy can now produce more of both goods than it could before, assuming the curve represents two goods.

If an Economy Is Growing, Then the Production Possibilities Curve