What does a movement from a point within a PPC to a point closer to the curve indicate?

A movement from a point within a production possibilities curve (PPC) to a point closer to the curve indicates actual growth. This movement reflects an increase in the efficiency and utilization of available resources. When an economy operates within its PPC, it signifies that resources are not used to their fullest potential; thus, moving closer to the curve demonstrates that the economy is optimizing its resource allocation, either increasing production of goods and services or improving overall productivity.

In practical terms, achieving a point on the curve means that an economy is maximizing its output given its available resources and technology. This contrasts with being inside the curve, where there is underutilization of resources, such as labor or capital.

The other possible answers relate to broader economic concepts. Potential growth is represented by an outward shift of the PPC, which indicates an increase in the economy's capacity to produce due to factors such as innovations or resource discoveries. A decline in resources would typically cause a shift of the PPC inward, not a movement within it, while a reduction in productivity could lead to operating along a lower level within the current PPC rather than moving towards it. Thus, the movement to a point closer to the curve specifically signifies actual growth in the context of utilizing existing resources more effectively.