Asked by Natalia Montenegro on Apr 27, 2024

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The process observed when an economy's production possibility frontier shifts outward is:

A) comparative advantage.
B) economic growth.
C) full employment.
D) specialization.

Production Possibility Frontier

A curve depicting the maximum feasible amounts of two goods that can be produced with available resources and technology.

Economic Growth

A growth in an economy's ability to produce goods and services when comparing one time period to another.

Outward Shift

A movement of a curve away from the origin on a graph, typically indicating an increase in supply or demand.

  • Understand the relationship between economic growth and outward shifts in the production possibility frontier.
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SM
Sarah MiddletonApr 28, 2024
Final Answer :
B
Explanation :
When an economy's production possibility frontier shifts outward, it indicates that the economy has experienced economic growth. This means that the economy is able to produce more goods and services than it previously could with the same amount of resources.