Figure 2-5

-Refer to Figure 2-5. Which of the following events would explain the shift of the production possibilities frontier from A to B?
A)A decrease in unemployment
B)A general technological advance
C)A technological advance in the hat industry
D)An improvement in the allocation of resources

Question

Figure 2-5
 
-Refer to Figure 2-5. Which of the following events would explain the shift of the production possibilities frontier from A to B?
A)A decrease in unemployment 
B)A general technological advance 
C)A technological advance in the hat industry 
D)An improvement in the allocation of resources

Quizplus · Accepted Answer

A general technological advance would increase the productive capabilities of an economy, allowing it to produce more of both goods, which is represented by the shift of the production possibilities frontier from A to B.

Figure 2-5 -Refer to Figure 2-5. Which of the Following Events Would