A technological improvement is represented by
A)a movement along the production possibilities frontier.
B)an outward shift of the production possibilities frontier.
C)a point outside the production possibilities frontier.
D)a point inside the production possibilities frontier.
E)a movement from a point inside the production possibilities frontier to a point on the production possibilities frontier.

Question

Quizplus · Accepted Answer

A technological improvement leads to an increase in the efficiency of production, which results in an outward shift of the production possibilities frontier. Therefore, option B is the correct answer.

A Technological Improvement Is Represented by