The PPC (or PPF, same thing) shows economic growth because it outlines exactly what the economy can produce at that moment. When it shifts outward in any way (be it towards consumer and capital goods, or X and Y), that MUST be because of economic growth.
The correct answer is D) a combination of two goods that can be produced using limited resources.
The production possibilities curve describe economic growth in that a combination of two goods that can be produced using limited resources.
This production possibilities curve is also called the production-possibility frontier. It serves economists to measure the maximum output of two products that have a set amount of input. Economists consider input as the factors of production such as capital, labor, land, technology.
The other options of the question were A) a combination of price and demand for goods and services. B) a combination of the goods produced before and after a change in the factor of production. C) a combination of two factors of production used to produce a single good or service.
