In general, the higher the proportion of resources devoted to technological research in an economy, the
A)greater will be current consumption.
B)faster the production possibilities frontier will shift outward.
C)faster the production possibilities frontier will shift inward.
D)closer it will come to having a comparative advantage in the production of all goods.
E)more bowed out will be the shape of the production possibilities frontier.

Question

Quizplus · Accepted Answer

Technological research leads to innovations and improvements in production efficiency, which causes an outward shift in the production possibilities frontier. Therefore, the higher the proportion of resources devoted to technological research in an economy, the faster the production possibilities frontier will shift outward.

In General, the Higher the Proportion of Resources Devoted to Technological