A growth of resources in an economy is shown in PP by

The correct answer is Rightward Shift.

Key Points

• A rightward shift in the Production Possibility Curve (PPC) represents economic growth due to an increase in available resources or technological advancements.
• Economic growth enables the economy to produce more goods and services, expanding its production capacity.
• Factors such as improved technology, better education, training, and infrastructure contribute to the rightward shift of the PPC.
• Increased availability of inputs like capital, labor, and natural resources leads to an enhanced productive efficiency, shifting the PPC outward.
• The rightward shift reflects the economy’s ability to achieve a higher level of production, both for consumer and capital goods.

Additional Information

• Production Possibility Curve (PPC):
  • It is a graphical representation showing the maximum possible combinations of two goods that an economy can produce given its resources and technology.
  • The curve assumes full and efficient utilization of resources.
  • The shape of the PPC is typically concave to the origin, illustrating the principle of increasing opportunity cost.
• Technological Advancements:
  • Improved technology can increase productivity by enabling better utilization of existing resources.
  • Examples include automation, artificial intelligence, and advanced machinery in production processes.
• Economic Growth:
  • Economic growth is measured by the increase in an economy's output over time, typically reflected as a rise in GDP.
  • It is driven by factors such as capital investment, innovation, skilled labor, and infrastructure development.
• Opportunity Cost:
  • Opportunity cost refers to the value of the next best alternative foregone when a choice is made.
  • It is a key concept in understanding resource allocation and trade-offs in economics.