An outward shift of the production possibility curve shows that?

A. production is shifting to the left
B. resources are under-utilized
C. economic growth has taken place
D. factors of production are moving outward

Correct Answer: Option D

Explanation

Increases in the production possibilities curve are represented by shifts outward, or to the right, while decreases are represented by shifts inward, or to the left.

When using a PPC, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. An outward shift of a PPC means that an economy has increased its capacity to produce all goods.