An improvement in technology used to produce goods would:
A)enable an economy to produce outside its original production possibilities frontier.
B)enable an economy to move along its original production possibilities frontier.
C)eliminate scarcity and the production possibilities frontier would no longer exist.
D)have no effect on the production possibilities frontier.
E)change the production possibilities frontier to a line with a positive slope.

Question

Quizplus · Accepted Answer

Improvements in technology allow an economy to produce more goods with the same amount of resources, effectively enabling it to produce outside its original production possibilities frontier (PPF), which represents the maximum output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

An Improvement in Technology Used to Produce Goods Would