Economic growth may be represented by a:
A) rightward shift of the production possibilities curve.
B) leftward shift of the production possibilities curve.
C) production possibilities curve that remains fixed.
D) point outside (to the right)of the production possibilities curve.

Question

Quizplus · Accepted Answer

Economic growth represents an increase in the economy's capacity to produce goods and services, which is reflected by a rightward shift of the production possibilities curve. This means that more goods and services can be produced with the same amount of resources, leading to higher levels of output and a higher standard of living.

Economic Growth May Be Represented by A