In the context of the production possibility frontier, an outward shift indicates:
A. Inefficient allocation of resources
B. Economic growth arising from an increase in resources or improvement in technology
C. Underutilisation of resources
D. A decline in the productive capacity of the economy
Answer: Option B
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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