The production possibilities curve represents tradeoffs. If the economy expands, the curve moves...

The production possibilities curve represents tradeoffs. If the economy expands, the curve moves...

• A. Left
• B. Not at all
• C. Right
• D. Upward in a circular form

Answer: (C)

The production possibilities frontier shows how many goods can be produced given current resources and technology, illustrating the tradeoffs a society faces. When the economy expands, it gains more resources or improved technology, increasing its overall capacity. That growth shifts the frontier outward, to the right on a typical two-good diagram, meaning more of every combination is attainable than before. It’s not merely a move along the same curve (that would happen with a different mix of production while resources stay fixed), nor is the shift upward in a circular form—growth changes the boundary itself, expanding what’s possible. So the correct description is a shift to the right.

The production possibilities frontier shows how many goods can be produced given current resources and technology, illustrating the tradeoffs a society faces. When the economy expands, it gains more resources or improved technology, increasing its overall capacity. That growth shifts the frontier outward, to the right on a typical two-good diagram, meaning more of every combination is attainable than before. It’s not merely a move along the same curve (that would happen with a different mix of production while resources stay fixed), nor is the shift upward in a circular form—growth changes the boundary itself, expanding what’s possible. So the correct description is a shift to the right.