Below is a production possibilities curve involving tea and videos.

-Refer to the graph above to answer this question.What is indicated by the shift from PPI to PPII?
A)Unemployment.
B)Inflation.
C)Inefficiency.
D)Economic growth.

Question

Below is a production possibilities curve involving tea and videos.
 
-Refer to the graph above to answer this question.What is indicated by the shift from PPI to PPII?
A)Unemployment. 
B)Inflation. 
C)Inefficiency. 
D)Economic growth.

Quizplus · Accepted Answer

The shift from PPI to PPII indicates an increase in the production capacity for both tea and videos, which results in economic growth. This is demonstrated by the outward shift of the production possibilities curve, enabling an increase in the production of either or both the goods.

Below Is a Production Possibilities Curve Involving Tea and Videos