Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as
A) an inward shift of the curve.
B) a movement from one point to another point along the curve.
C) an outward shift of the curve.
D) a movement from a point on the curve to a point inside the curve.

Question

Quizplus · Accepted Answer

A technological advance that increases output with the same inputs would result in an outward shift of the production possibilities curve, indicating that more of both goods can be produced.

Using a Production Possibilities Curve, a Technological Advance That Increases