GCEEconomicsBasic Economic Concepts2022

If a country's production possibility curve shifts outward, this most likely indicates

Aa redistribution of income among citizens
Ba reduction in consumer spending
Can increase in the productive capacity of the economyCORRECT
Da fall in the general price level
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
An outward shift of the PPC represents economic growth, meaning the economy can now produce more of all goods than before. This is caused by factors such as technological advancement, discovery of new resources, or an increase in the labour force — all of which expand productive capacity. Price levels and income redistribution do not shift the PPC.
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