ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Production Possibility Frontier
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The Gross Domestic Barrier
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The Marginal Consumption Frontier
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The 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: -When the production possibilities frontier shifts outward, it represents an increase in the maximum possible output at every combination of factors of production, that is an increase in the real GDP. Hence, economic growth is reflected through the outward shift of the PPC.
Detailed explanation-3: -The production possibilities frontier (PPF) illustrates the total production of a country when it uses all its scarce resources. An outward shift of the production possibilities frontier represents an increase in technology, productivity, or supply.
Detailed explanation-4: -When the PPF curve moves outwards (outward shift), we can infer there has been growth in an economy. This can result from an increase in resources. It can also represent improved technology. When the PPF curve moves inwards (inward shift) it suggests the economy is shrinking.