Question

Increase (growth) of resources implies that production possibility curve ____________.

• A. shifts to the right
• B. shifts to the left
• C. rotates to the right
• D. none of the above

Answer 1

The correct option is A shifts to the right

Production possibility curve shows the different combinations of production of two commodities that can be achieved in an economy given the resources and technology, when they are fully utilized. Therefore, to achieve any point beyond PPC, there has to be an increase in the present supply of resources and/or technology advancement, which would lead to a rightward shift in the PPC as the overall production increases which is a sign of economic growth.