Question

A shift in a PPC/PPF to the right (or outward) illustrates Growth which may be generated by __________________ (better utilizing existing resources) or by acquiring more resources over time.

Answer 1

Answer:

The correct answer is economic growth.

Explanation:

A production possibility curve or frontier shows the different combinations or bundles of two goods that can be produced using limited resources. The curve is concave because of increasing opportunity cost.  

An outward shift in the production possibility curve shows an increase in the level of production. This can happen because of two reasons ,

1. Increase in the quantity of resources available , and
2. Improvement in technology

Both of these factors will help in increasing the level of production. In other words, we can say that the outward shift in the production possibility curve shows economic growth.