Question on: WAEC Economics - 2015
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
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Correct Option: D
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.
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