Understand what economic growth means on a PPF.

Economic growth occurs when an economy's capacity to produce goods and services increases. On a PPF graph, this is shown by the entire PPF curve shifting outwards (e.g., from PPF1 to PPF2).

• a) A movement from point B to A: Point B is on PPF1. Point A is outside both PPF1 and PPF2. If the economy moves from B to A, it implies that the PPF has shifted outwards to make point A attainable. This would represent economic growth.
• b) A movement from point E to F: Point E is on PPF1 (the inner curve). Point F is on PPF2 (the outer curve). A movement from a point on an inner PPF to a point on an outer PPF signifies an increase in productive capacity, which is economic growth.
• c) A movement from D to E: Point D is inside PPF1, indicating that resources are not being fully or efficiently utilized. Point E is on PPF1, indicating efficient utilization of existing resources. A movement from D to E represents an improvement in efficiency (moving from an inefficient point to an efficient point on the same PPF), not an expansion of the economy's overall productive capacity (economic growth).
• d) A movement from PP1 to PP2: This explicitly describes the entire PPF shifting outwards from PP1 to PP2. This is the direct graphical representation of economic growth.

Based on the analysis, a movement from D to E shows an improvement in efficiency by utilizing existing resources more fully, rather than an increase in the potential output of the economy.

The correct option is c).