The figure given below represents the production possibilities curve for goods and services in an economy. Figure 2.3 Refer to Figure 2.3.The movement from Curve X to Curve Y indicates:

Question

The figure given below represents the production possibilities curve for goods and services in an economy. Figure 2.3  Refer to Figure 2.3.The movement from Curve X to Curve Y indicates:

Quizplus · Accepted Answer

The movement from Curve X to Curve Y indicates an expansion in the ability to produce goods. This is because the production possibilities curve has shifted outward, indicating an increase in the economy's capacity to produce goods. There is no information given about a contraction in the production of goods or services, or an expansion in the ability to produce services.

The Figure Given Below Represents the Production Possibilities Curve for Goods