Growth in a production possibilities curve diagram is shown as:
A)a movement along the curve to the southeast.
B)a movement along the curve to the southwest.
C)an outward shift of the curve.
D)an inward shift of the curve.

Question

Growth in a production possibilities curve diagram is shown as:
A)​a movement along the curve to the southeast.
B)​a movement along the curve to the southwest.
C)​an outward shift of the curve.
D)​an inward shift of the curve.

Quizplus · Accepted Answer

Growth in a production possibilities curve is shown as an outward shift of the curve. This indicates an increase in the economy's capacity to produce goods and services due to factors such as technological advancements or increased availability of resources. A movement along the curve to the southeast or southwest would indicate a change in the combination of goods being produced, without an increase in production capacity. An inward shift of the curve would indicate a decrease in production capacity due to factors such as natural disasters or resource depletion.

Growth in a Production Possibilities Curve Diagram Is Shown As