In general,the greater the proportion of resources devoted to technological research in an economy,the
A)greater is current consumption.
B)faster the production possibilities frontier shifts outward.
C)faster the production possibilities frontier shifts inward.
D)closer it comes to having a comparative advantage in the production of all goods.
E)more bowed out is the shape of the production possibilities frontier.

Question

Quizplus · Accepted Answer

Devoting more resources to technological research leads to the discovery of new and improved methods of production, which shifts the production possibilities frontier outward, indicating an increase in the economy's potential output. This does not necessarily mean that current consumption will be higher, as some resources may need to be diverted from current consumption to research and development activities. The shape of the production possibilities frontier is not related to the level of technological research in the economy. Comparative advantage depends on many factors, including the availability and efficiency of resources, and cannot be determined solely by the level of technological research.

In General,the Greater the Proportion of Resources Devoted to Technological