In the context of the production possibility frontier, an outward shift indicates:
A. A decline in the productive capacity of the economy
B. Inefficient allocation of resources
C. Underutilisation of resources
D. Economic growth arising from an increase in resources or improvement in technology
Answer: Option D
Solution (By JKSSB Mock Tests)
An outward shift of the PPF reflects an increase in the economy's productive capacity due to growth in resources or technological progress.
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