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Application of Economicseconomics-mcqs › application-of-economics
Published
2 Jun 2019
Last updated
28 May 2026

Browse all Application of Economics MCQs

Which of the following best illustrates economic growth?

Multiple choice question for Application of Economics. Select an option, then review the explanation below.

Choose the correct answer

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.

Practice related questions from the same subject.

  1. 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. 2.Which of the following topics falls under the study of microeconomics?
  3. 3.What are positive statements characterized by?
  4. 4.Which of the following statements expresses a normative viewpoint?
  5. 5.Which of the following factors does not cause the production possibilities curve of a country to expand outward?

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