Production possibilities in an economy decrease as more resources and better technology are utilized.

Question

Quizplus · Accepted Answer

As more resources and better technology are utilized, production possibilities in an economy can actually increase. This is because the economy can produce more output with the same amount of resources due to technological advancements and improved efficiency. However, if resources become scarce or technology becomes outdated, production possibilities may decrease.

Production Possibilities in an Economy Decrease as More Resources and Better