Question

As an economy​ grows, A. the opportunity cost of production will approach 0. B. its PPF does not​ shift; instead, the production point moves from inside the PPF to be closer to the PPF. C. its PPF shifts outward. D. it can eliminate scarcity. E. the opportunity cost of production will increase.

Answer 1

Option C, its PPF shifts outward, is the right answer.

Step-by-step explanation:

Option “c” is correct because the growth in the economy shows two things. First, the output of the economy has increased during a particular period of time. Secondly, it shows that the potential of the economy has increased. This means its productivity to produce has increased. Therefore, in such cases, the PPF curve shifts rightwards and this rightwards shift in PPF shows the economic growth