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An outward shift of the production possibility curve show...

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 is 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.