Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. Economic growth is represented by A) a movement from Point A to Point B along ppf₁. B) a movement from Point C to Point B. C) a movement from Point B to Point A. D) a shift in the production possibilities frontier from ppf₂ to ppf₃.

Question

Quizplus · Accepted Answer

Economic growth is represented by a shift in the production possibilities frontier (PPF) outward, indicating an increase in the capacity to produce goods and services. This is shown by moving from one PPF to a new, outwardly shifted PPF.

Refer to the Information Provided in Figure 16