Which of the following best represents economic growth?
A) a movement down a given production possibilities curve.
B) a movement up a given production possibilities curve.
C) an outward or, equivalently, a rightward shift of the production possibilities curve.
D) an inward or, equivalently, leftward shift of the production possibilities curve.

Question

Quizplus · Accepted Answer

Economic growth is represented by an outward shift of the production possibilities curve. This indicates an increase in the economy's ability to produce goods and services over time, resulting in an increase in potential output. A movement up or down a given production possibilities curve represents a change in the mix of goods produced, while an inward shift represents a decrease in production capacity.

Which of the Following Best Represents Economic Growth