-Refer to the above diagram. An improvement in technology will: A) shift the production possibilities curve from PP₁ to PP₂. B) shift the production possibilities curve from PP₂ to PP₁. C) move the economy from A to C along PP₁. D) move the economy from A, B, or C on PP₁ to D

Question

Quizplus · Accepted Answer

An improvement in technology typically shifts the production possibilities curve outward, indicating that more of both goods can be produced with the same resources, hence shifting from PP1 to PP2.

-Refer to the Above Diagram