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irakobra [83]
2 years ago
11

Economic growth can be illustrated by: a. ​ an inward shift of the production possibilities curve. b. ​ a movement along the pro

duction possibilities curve. c. ​ a movement from a point on the production possibilities curve to a point inside the production possibilities curve. d. ​ an outward shift of the production possibilities curve.
Physics
1 answer:
erastovalidia [21]2 years ago
6 0

Answer:

Economic growth can be illustrated by:

d.  an outward shift of the production possibilities curve.

Explanation:

Economic growth is the process of increasing the economy's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources.

Production Possibilities refers to the ability of a country to produce goods or services given the limited resources and technology.  It is therefore possible to increase production of both goods at the same time as long as resources allow it.

The Production Possibilities Curve, also known as the production possibilities frontier, is a graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently. Firstly, and most commonly, growth is defined as an increase in the output that an economy produces over a period of time, the minimum being two consecutive quarters. An increase in an economy's productive potential can be shown by an outward shift in the economy's production possibility frontier (PPF).

Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other. The curve measures the trade-off between producing one good versus another.PPC or production possibility curve is a curve whose basic purpose is to show the different possible combinations of two goods that can be produced within the given available resource.

The two main characteristics of PPC are: slopes downwards to the right: PPC slopes downwards from left to right. It is because in a situation of fuller utilization of the given resources, production of both the goods cannot be increased simultaneously.

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