Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6
-Refer to Figure 2.6. Economic growth is represented by a
A) shift from ppf2 to ppf1.
B) shift from ppf1 to ppf2.
C) movement along ppf1.
D) movement along ppf2

Question

Refer to the information provided in Figure 2.6 below to answer the questions that follow.  Figure 2.6
-Refer to Figure 2.6. Economic growth is represented by a
A) shift from ppf2 to ppf1. 
B) shift from ppf1 to ppf2. 
C) movement along ppf1. 
D) movement along ppf2

Quizplus · Accepted Answer

Economic growth is represented by a shift outward of the production possibilities frontier (PPF), i.e. from ppf1 to ppf2. This is because economic growth represents an increase in productive capacity, which allows more of all goods and services to be produced. Movement along the PPF, whether on ppf1 or ppf2, represents a change in the combination of goods produced, but not an increase in overall production capacity. Therefore, the correct answer is B.

Refer to the Information Provided in Figure 2