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WAEC Economics 2020 Objective — Question 2

Question 2 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

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When the production possibility curve shifts outwards, the economy experiences

  • A. growthCorrect
  • B. over-production
  • C. inefficient use of resources
  • D. under-production

Explanation

An outward shift of the production possibility curve shows that more output combinations are attainable, indicating economic growth (e.g. from more resources or improved technology).

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