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A-Level Economics · PPF outward shift (economic growth) diagram question

The gold arrows run from PPF1 out to PPF2 at one fixed level of capital goods. Which arrow would be WRONG for economic growth?

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The diagram

The answer

Arrows running inward, from PPF2 back to PPF1. Inward is the picture of an economy LOSING capacity — war, natural disaster, mass emigration. Draw that when you mean growth and you have argued the opposite of your own paragraph. Growth moves the frontier AWAY from the origin, so every shift arrow runs outward, curve to curve, at one fixed level — that is the only way the arrow says 'more of both goods is now possible'. The wrong-way arrow, PPF2 back to PPF1, says productive potential has fallen. Examiners read the arrow before they read the sentence.

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This is one of 5 questions on the ppf outward shift (economic growth) diagram — every corner lettered, every wrong answer diagnosed.

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