An outward shift of the production possibility curve shows that?
A. production is shifting to the left B. resources are under-utilized C. economic growth has taken place D. factors of production are moving outward
Correct Answer: D
Explanation
Increases in the production possibilities curve are represented by shifts outward, or to the right, while decreases are represented by shifts inward, or to the left. When using a PPc, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. An outward shift of a PPc means that an economy has increased its capacity to produce all goods.
