Figure 2.3

Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?

Question

Figure 2.3
  
Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. Consider the following movements:
A.from point V to point W
B.from point W to point Y
C.from point Y to point Z
Which of the movements listed above represents economic growth?

Quizplus · Accepted Answer

Economic growth is represented by an outward shift of the production possibilities frontier (PPF). Movements from point W to point Y and from point Y to point Z indicate such shifts, suggesting an increase in the economy's capacity to produce goods and services.

Figure 2.3 Figure 2.3 Shows Various Points on Three Different Production Possibility