Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
opportunity cost
B
productive capacity
C
comparative advantage
D
resource scarcity
Understanding the Answer
Let's break down why this is correct
Answer
A shift of the Production Possibilities Curve (PPC) to the right means that an economy can produce more goods and services than before. This increase in production capacity often happens because of improvements in technology or when resources are used more efficiently. For example, if a factory upgrades its machinery, it can make more products in the same amount of time, leading to a rightward shift of the PPC. This growth is important because it allows the economy to meet the needs of its people better and can lead to higher overall living standards. Therefore, a rightward shift indicates an increase in an economy's productive capacity.
Detailed Explanation
When the PPC shifts to the right, it shows that the economy can produce more goods and services. Other options are incorrect because Opportunity cost is what you give up when you choose one option over another; Comparative advantage is about who can produce something at a lower opportunity cost.
Key Concepts
Production Possibilities Curve
Economic Growth
Resource Allocation
Topic
Production Possibilities Curve Shifts
Difficulty
medium level question
Cognitive Level
understand
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