In the Figure Given Below, We See an Expansion of the Production-Possibility

question 7

Multiple Choice

In the figure given below, we see an expansion of the production-possibility curve (from PPC₁ to PPC₂) . The two goods produced are wheat and cloth, which are land-intensive and labor-intensive respectively. The outward shift of the production-possibility curve shows: $$\text { Wheat }$$

• A)biased growth.
• B)balanced growth.
• C)a move from a no-trade situation to free trade.
• D)a fall in production costs of both the goods.

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