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An outward shift of the production possibility curve shows that?

An outward shift of the production possibility curve shows that?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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: Option D
Explanation:
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.

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