contestada

Economic growth can best be portrayed as a(n):______.
a. inward shift of the production possibilities frontier.
b. outward shift of the production possibilities frontier.
c. movement from a point inside to a point outside of the production possibilities frontier.
d. movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities frontier.

Respuesta :

ProfChris1

Answer:

b. outward shift of the production possibilities frontier.

Explanation:

Economic growth can best be portrayed as an outward shift of the production possibilities frontier. When there is economic growth, it means that there is an increase in output. Therefore, this leads to the outward shift of the production possibilities curve. If economy is shrinking, the curve shifts inward thereby showing that output is low.

We can say that there is economic growth when output increases to meet customer's demand. At this time, we can produce more.

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