ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Production possibility frontier
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Gross Domestic frontier
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Marginal consumption frontier
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Minimum efficient scale
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Detailed explanation-1: -Economic growth occurs when an economy’s production at the full employment level increases. Increase in the production at the full employment level is shown by an outward shift of production possibility frontier (PPF).
Detailed explanation-2: -As output increased, the PPF curve would be pushed outwards. A new curve, represented in the figure on which Y would fall, would show the new optimal allocation of resources. When the PPF shifts outwards, it implies growth in an economy.
Detailed explanation-3: -The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
Detailed explanation-4: -An increase in the physical quantity or in the quality of factors of production available to an economy or a technological gain will allow the economy to produce more goods and services; it will shift the economy’s production possibilities curve outward.