Given a two-good production possibilities frontier, a technological improvement in the production of one good will cause the frontier to pivot outward.

Question

Quizplus · Accepted Answer

A technological improvement in the production of one good will increase the production capacity of the economy, leading to an outward shift of the production possibilities frontier. This is because the economy can produce more of one good without sacrificing the production of the other good.

Given a Two-Good Production Possibilities Frontier, a Technological Improvement in the Production