WAEC - Economics (2015 - No. 3)
An outward shift of the production possibility curve shows that?
production is shifting to the left
resources are under-utilized
economic growth has taken place
factors of production are moving outward
Wyjaśnienie
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.