As an economy grows,

Name: As an economy grows,
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

As an economy grows, it becomes more efficient in producing goods and services, allowing it to increase its production possibilities. This means that the economy's PPF shifts outward. Thus, choice C is the correct option. Choices A, B, and D are incorrect, as scarcity cannot be fully eliminated, the opportunity cost will increase with growth, and the opportunity cost will never reach 0. Choice E is incorrect, as the PPF does shift outward.

As an Economy Grows