Question

In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?

Answer 1

The correct answer is The economy experiences economic growth.

Step-by-step explanation:

Economic growth is understood as the positive evolution of the living standards of a territory, usually countries, measured in terms of the productive capacity of its economy and its income within a specific period of time.

The strictest definition of economic growth is that which indicates that there is an increase in terms of income or of the goods and services that the economy of a territory produces in a given time generally measured in years.

The concept of income can encompass within this definition many other economic indicators of well-being of any country or region. Aspects such as the level of savings or investment of its citizens and its trade balance are some that are commonly taken into account when studying economic growth. That said, the most used meter to measure economic evolution is usually the fluctuations in GDP (Gross Domestic Product) of the country analyzed.