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An Economy Produces Apples and Oranges

Question 115

Multiple Choice

An economy produces apples and oranges.The dashed line in the figure below represents the production possibilities curve of this economy.Suppose a productivity catalyst in the form of improved agricultural technology is introduced in the economy.In this case,the production possibilities curve will ________.
An economy produces apples and oranges.The dashed line in the figure below represents the production possibilities curve of this economy.Suppose a productivity catalyst in the form of improved agricultural technology is introduced in the economy.In this case,the production possibilities curve will ________.   A)  change to PPC 1 B)  change to PPC 2 C)  change to PPC 3 D)  remain unchanged


A) change to PPC 1
B) change to PPC 2
C) change to PPC 3
D) remain unchanged

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