Using a production possibilities curve, economic growth is represented by
A) an outward shift in the curve.
B) a movement along the curve.
C) an inward shift of the curve.
D) a pivot of the curve.

Question

Quizplus · Accepted Answer

Economic growth is represented by an increase in the production capacity of an economy. This is typically shown on a production possibilities curve as an outward shift, indicating that more goods and services can be produced at every level of production. This is because investments in technology, infrastructure, or human capital have increased the efficiency of production.

Using a Production Possibilities Curve, Economic Growth Is Represented by