Graphically, economic growth is represented as
A) a movement along the production possibilities curve.
B) a movement from a point inside the production possibilities curve to a point on the curve itself.
C) an inward shift of the production possibilities curve.
D) an outward shift of the production possibilities curve.

Question

Quizplus · Accepted Answer

Economic growth is represented as an increase in the economy's ability to produce goods and services. This is reflected as an outward shift of the production possibilities curve, indicating that more output can be produced with the same resources. Choices A and B refer to movements along the production possibilities curve, which may reflect changes in the allocation of resources but not necessarily an increase in output. Choice C refers to a decrease in the ability to produce, which is the opposite of economic growth.

Graphically, Economic Growth Is Represented as