Economic growth can be shown by ?
Correct answer: C. An outward shift of the production possibility frontier
- A. An inward shift of the production possibility frontier
- B. A movement along the production possibility frontier
- C. An outward shift of the production possibility frontier
- D. A decision by the government to produce inside the production possibility frontier
Explanation
Economic growth increases an economy’s productive capacity, so it is represented by an outward shift of the production possibility frontier. Movements along the frontier only change the combination of goods produced.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
In a free market the combination of products produced will be determined by ?
An economy may operate outside the production possibility Frontier if ?
The resources in an economy are ?
Which of the following statements supports deregulation of industries ?
Price equals ?
In the long term a firm will produce provided the revenue covers ?