An increase in productivity as a result of a new technology would cause the production possibilities frontier to:
A)shift in.
B)shift out.
C)not move until society chose to move it.
D)become more meaningful in policy decisions.

Question

Quizplus · Accepted Answer

An increase in productivity would allow for an increase in output using the same amount of inputs. This means that the economy can produce more goods and services than before. As a result, the production possibilities frontier would shift outwards, indicating the ability to produce more of both goods or services.

An Increase in Productivity as a Result of a New