Which term represents the shift of the PPC due to technological advancements?

The correct term that represents the shift of the Production Possibility Curve (PPC) due to technological advancements is "Potential growth." When technological advancements occur, they enhance the efficiency and productivity of resources, allowing an economy to produce more goods and services than previously possible. This newfound ability to generate output shifts the PPC outward, indicating an increase in the economy's potential output.

Potential growth signifies that there are improvements in the economy's productive capacity, which can be realized through advancements in technology, better education, or improved infrastructure. The PPC represents maximum attainable production levels, and any factor that helps to increase this production capacity—like technology—will lead to potential growth.

In contrast, the other options do not accurately capture this concept. Market contraction refers to a decrease in demand or supply, which would not relate to technological progress. Demand increase relates to shifts in consumer preferences or incomes rather than production capabilities. Marginal growth pertains more to incremental improvements within current production decisions rather than a comprehensive shift in potential output due to technologies.