Figure 2-10
-Refer to Figure 2-10.The shift of the production possibilities frontier from A to B illustrates

Question

Figure 2-10 
-Refer to Figure 2-10.The shift of the production possibilities frontier from A to B illustrates

Quizplus · Accepted Answer

The shift of the production possibilities frontier from A to B illustrates economic growth, which means the economy's ability to produce more goods and services has increased over time as a result of factors like advancement in technology, investment, and improved efficiency. Option A is incorrect because the shift of the PPF is not due to technological advances in only one industry but across the economy as a whole. Option B is incorrect because the shift of the PPF does not necessarily imply a reallocation of resources, but an increase in the economy's potential to produce. Option D is incorrect because only option C is correct.

Figure 2-10 -Refer to Figure 2-10.The Shift of the Production Possibilities Frontier