What is the production possibilities frontier (PPF), and what does an outward shift signify?

• A. The PPF shows the maximum feasible combination of two goods given resources; outward shift signifies economic growth.
• B. The PPF represents production techniques and resource usage over time; outward shift signifies a change in technology and resources that expands capacity (economic growth).
• C. The PPF measures consumer demand over time; outward shift signals inflation.
• D. The PPF is a demand schedule; outward shift signals price changes.

Answer: (B)