Economic growth can be depicted on a production possibilities frontier (PPF) as an:
a. inward shift of the PPF.
b. outward shift of the PPF.
c. inward rotation along the x-axis.
d. inward rotation along the y-axis.
e. increase in opportunity cost.
Production Possibility Frontier:
The production possibility frontier expresses the various bundles of two commodities that can be manufactured using the given amount of input and technology. This curve shows the same level of input resources are employed to make different pairs of two goods.
Answer and Explanation: 1
- Economic growth can be depicted on a production possibilities frontier (PPF) as an b. outward shift of the PPF.
Economic growth is the increment in...
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fromChapter 1 / Lesson 5
Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.