Economic growth can be pictured in a production possibilities curve diagram by: a. shifting the...

Question:

Economic growth can be pictured in a production possibilities curve diagram by:

a. shifting the production possibilities curve out.

b. moving from right to left along the curve.

c. moving from left to right along the curve.

d. shifting the production possibilities curve in.

Production Possibilities Curve:

A production possibilities curve plots all combinations of two distinct goods that can be produced if an economy is using all resources available in the most efficient manner. This means there is no cyclical unemployment and all available technology is being used.

Answer and Explanation: 1

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Answer: a

By moving along the production possibilities curve, some amount of one good is given up to get more of another. There is no economic growth...

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Production Possibilities Curve: Definition & Examples

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Chapter 11 / Lesson 28
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Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.


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