Concept:An outward shift of the production possibility curve (
PPC) shows an increase in an economy's capacity to produce goods and services, which indicates economic growth.
Explanation:The
PPC shows the maximum possible combinations of two goods an economy can produce using all its resources efficiently.
When the
PPC shifts outward, or to the right, it means the economy can now produce more of both goods than before.
This happens because of an increase in resources, better technology, or improved productivity.
An outward shift therefore represents a rise in potential output, which is the main sign of economic growth.
It does not mean under-utilisation of resources or merely factors moving outward; it means the actual productive capacity has increased.
Answer:C. economic growth has taken place