Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4. 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?
A) a, b, and c
B) b and c only
C) a only
D) b only

Question

Figure 2-4  Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4. 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?
A) a, b, and c 
B) b and c only 
C) a only 
D) b only

Quizplus · Accepted Answer

Economic growth is represented by an outward shift of the production possibilities curve, which allows for more production of both goods. Movements b and c represent outward shifts of the curve, while movement a does not.

Figure 2-4 Figure 2-4 Shows Various Points on Three