A technological advance would best be represented by
A) A shift outward of the production possibilities curve.
B) A shift inward of the production possibilities curve.
C) A movement from inside the production possibilities curve to a point on the production possibilities curve.
D) A movement from the production possibilities curve to a point inside the production possibilities curve. The shift would move the production possibilities curve away from the origin so that we can get more of both goods.

Question

Quizplus · Accepted Answer

A technological advance allows an economy to produce more goods and services with the same amount of resources, effectively expanding its production capabilities. This is best represented by a shift outward of the production possibilities curve, indicating an increase in potential output.

A Technological Advance Would Best Be Represented by