Economic growth can be illustrated by:

Question

Quizplus · Accepted Answer

Economic growth refers to an increase in the production capacity of an economy over time. This increase in production capacity can be illustrated by an outward shift of the production possibilities curve, as the economy is now able to produce more of all goods and services. Option D depicts this outward shift, making it the best choice. Options A and B depict movements along or within the existing production possibilities curve, which do not represent economic growth. Option C depicts an inward shift of the production possibilities curve, which represents a decrease in the economy's production capacity, not economic growth.

Economic Growth Can Be Illustrated By