In general, the more resources that are devoted to technological research, the
A) greater is current consumption.
B) higher is the unemployment rate.
C) faster the PPF shifts outward.
D) more the PPF will bow outward.

Question

Quizplus · Accepted Answer

The Production Possibility Frontier (PPF) represents the maximum output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. Devoting more resources to technological research typically leads to innovations and improvements in production processes, which in turn increase the efficiency and productivity of an economy. This results in the PPF shifting outward, indicating that the economy can produce more of both goods or services than before, without increasing the amount of resources. This outward shift reflects economic growth and an increase in potential output, not a change in the shape of the PPF (which would imply a change in opportunity costs) or an immediate increase in current consumption or unemployment.

In General, the More Resources That Are Devoted to Technological