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.

Question

Quizplus · Accepted Answer

Technological advances allow an economy to produce more output with the same amount of resources, effectively expanding its capacity. This is represented by a shift outward of the production possibilities curve, indicating that the economy can now produce more of both goods than it could before.

A Technological Advance Would Best Be Represented by