An outward shift of the production possibilities curve represents
A) economic contraction.
B) economic growth.
C) economic recession.
D) economic inflation.

Question

Quizplus · Accepted Answer

An outward shift of the production possibilities curve represents economic growth because it shows an increase in the economy's ability to produce goods and services. This can be achieved through advancements in technology and an increase in the labor force or capital investment.

An Outward Shift of the Production Possibilities Curve Represents