A technological improvement is represented by
A)an outward shift of the production possibilities frontier.
B)a movement along the production possibilities frontier.
C)a point inside the production possibilities frontier.
D)a point outside the production possibilities frontier.
E)a movement from a point inside the production possibilities frontier to a point on the production possibilities frontier.

Question

Quizplus · Accepted Answer

A technological improvement allows for an increase in productivity, which leads to an increase in production capacity. This increase in production capacity is represented by an outward shift of the production possibilities frontier.

A Technological Improvement Is Represented by