Who drives decisions about what to produce in a free market system? Will investing in new resources create economic growth? How do you show economic growth on the production possibility frontier? What type of things could cause the frontier on PPC to move?

1. In a free market system, decisions about what to produce are driven by consumers. Consumers express their preferences through their purchasing decisions, and producers respond to these preferences by producing the goods and services that are in demand.<br />2. Investing in new resources can create economic growth. When businesses invest in new resources, such as technology or machinery, they can increase their production capacity and efficiency. This can lead to increased output and economic growth.<br />3. Economic growth on the production possibility frontier (PPF) can be shown by an outward shift of the frontier. This indicates that the economy is producing more of both goods or services than it was previously able to.<br />4. The frontier on the PPF can move due to several factors, including technological advancements, increases in resources, or improvements in efficiency. For example, if a country discovers a new natural resource, this could cause the frontier to move outward. Similarly, if a country improves its technology or increases its efficiency, this could also cause the frontier to move outward.