The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.Growth in the country's productive capacity is illustrated by A)a point like D outside the boundary. B)a movement from a point inside the boundary such as C to the boundary. C)the movement between points on a given boundary. D)a single point such as A on the boundary. E)an outward shift of the boundary,for example from PPB₁ to PPB₂.

Question

Quizplus · Accepted Answer

As the diagram shows two production possibility boundaries for Country X, the growth in the country's productive capacity would only be illustrated by an outward shift of the boundary, such as from PPB₁ to PPB₂. Therefore, Option E is the correct choice. Points A, C, and D do not necessarily represent growth in the country's productive capacity.

The Diagram Below Shows Two Production Possibilities Boundaries for Country