Question

Use the figure given to answer question:
What does the shift in PPF from $P{P}_1$ to $P{P}_2$ show?

• A. What to produce?
• B. How to produce?
• C. For whom to produce?
• D. Economic growth

Answer 1

Answer: (D)

Economic growth

A shift in the production possibility curve from$P{P}_1$ to $P{P}_2$ indicates that the production of bullets are increased owing to increased supply of resources used in the production of bullet or any technological up-gradation in the production which leads to economic growth.