13. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure? a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X. b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y. c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product. d) This Figure represents growth due to an increase in specialization. Production Possibilities Frontier28PPFN24Point E20PPFO1612812162024product Xproduct Y

Production possibility frontier shows the different optimum combinations of goods that can be…

Answered: Assuming the PPF is shifting from PPFo…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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13. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure?

		a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X.
		b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y.
		c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product.
		d) This Figure represents growth due to an increase in specialization.

Production Possibilities Frontier
28
PPFN
24
Point E
20
PPFO
16
12
8
12
16
20
24
product X
product Y

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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