Assuming that a society always operates on its production possibilities curve, an outward shift of the curve implies
A)economic growth has occurred.
B)the society is making more efficient use of its available resources.
C)consumer demand has increased.
D)the present value of capital resources has increased.

Question

Quizplus · Accepted Answer

An outward shift of the production possibilities curve implies economic growth has occurred. This means that the society's ability to produce goods and services has increased, which may be due to technological advancements, an increase in the labor force, or an increase in the quantity or quality of capital resources. Therefore, the society is able to produce more goods and services than before at any given point in time, leading to an outward shift of the production possibilities curve.

Assuming That a Society Always Operates on Its Production Possibilities