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- Application of Economicseconomics-mcqs › application-of-economics
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
Which of the following best illustrates economic growth?
Multiple choice question for Application of Economics. Select an option, then review the explanation below.
Explanation
Economic growth is represented by the production possibilities frontier shifting outward, indicating an increase in an economy's capacity to produce goods and services. Movements toward the curve from inside show better resource utilization but not growth. An inward shift signals a reduction in capacity, while movement along the curve reflects changes in the production mix, not growth.
More Application of Economics MCQs
Practice related questions from the same subject.
- 1.Two economists are debating the impact of government spending on unemployment. One claims that increasing government expenditure by 50 billion dollars would reduce unemployment by one percentage point. The other argues that the same spending would only lower unemployment by 0.1%, and even then, the effect would be short-lived. What best explains their disagreement?
- 2.Which of the following topics falls under the study of microeconomics?
- 3.What are positive statements characterized by?
- 4.Which of the following statements expresses a normative viewpoint?
- 5.Which of the following factors does not cause the production possibilities curve of a country to expand outward?