An economy allocates its scarce resources between the production of Agricultural Output and Eco-tourism Services, as shown by the production possibility frontier (PPF) below.
If the economy moves its production from point U U\,U to point VVV, which of the following best describes this movement?
An outward shift in the PPF boundary, signifying long-run economic growth
The automatic achievement of allocative efficiency, as any point on the frontier satisfies consumer preferences perfectly
An increase in productive efficiency, achieved by employing previously underutilized or idle resources
A constant opportunity cost, because the economy can now produce more of both goods simultaneously