Figure 3-2

-Refer to Figure 3-2.A technological advancement would be represented by a movement from
A) A to B.
B) B to A.
C) S₁ to S₂.
D) S₂ to S₁.

Question

Figure 3-2
 
-Refer to Figure 3-2.A technological advancement would be represented by a movement from
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Quizplus · Accepted Answer

Technological advancement is represented by a shift from a lower production possibility frontier (PPF) to a higher PPF. In this case, the shift is from S₁ to S₂, indicating that more output can be produced with the same amount of resources as a result of technological improvements. Movements between points on the same PPF (A to B or B to A, or S₁ to S₁ or S₂ to S₂) do not represent technological advancement.

Figure 3-2 -Refer to Figure 3-2.A Technological Advancement Would Be Represented by Would