Suppose there is an improvement in technology.Which statement best reflects what would happen to a production possibilities frontier?

Question

Quizplus · Accepted Answer

An improvement in technology would increase the economy's capacity to produce goods and services, leading to an outward shift of the production possibilities frontier. However, the shift may not necessarily be parallel because the increase in productivity may be greater in some sectors than in others, resulting in a curved or uneven shift. Therefore, D is the best answer.

Suppose There Is an Improvement in Technology