A decrease in growth rates will cause: A. no shift of an economy's production possibilities curve B. an outward shift of an economy's production possibilities curve C. a movement from a point inside an economy's production possibilities curve D. None of the above
Production Possibility Curve:
A production possibility curve refers to a measure which focuses on measuring the maximum output of two goods when both the goods use the same amount of input. The curve shows the maximum level of output that can be produced by two goods when efficiently using all the resources.
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fromChapter 3 / Lesson 8
The production possibility curve demonstrates the potential profit from a given economic condition. See how this illustrates different economic conditions through evaluating scarcity, production factors, efficiency, and opportunity costs.