Economic growth can be illustrated by:

Question

Quizplus · Accepted Answer

An outward shift of the production possibilities curve indicates an increase in the economy's capacity to produce goods and services, which is the essence of economic growth. When there is an inward shift of the production possibilities curve, it represents a decrease in the availability of resources, such as labor or capital, and results in a decrease in economic output. Option A illustrates efficient use of existing resources, but does not represent economic growth. Option B represents a decrease in resources, and option E represents a change in the relationship between two goods, both of which do not reflect economic growth.

Economic Growth Can Be Illustrated By