Question

question 10 (mandatory) (3.0303 points)
economic growth can be shown by

a) movement along the production possibilities curve.

b) a shift of the production possibilities curve outward.

c) a point inside the production possibilities curve.

d) a shift of the production possibilities curve inward.

Explanation:

The production possibilities curve (PPC) represents the maximum combination of goods an economy can produce. A movement along the curve only reallocates resources between goods, not growth. A point inside means unused resources, not growth. An inward shift means reduced production capacity. Only an outward shift reflects increased resources/technology, i.e., economic growth.

Answer:

b) a shift of the production possibilities curve outward.