An increase in the technology used in the production of only one of the two goods in a society will
A)eliminate scarcity
B)move the production possibilities frontier out in all directions
C)move the production possibilities frontier in all directions
D)leave one intercept of the production possibilities frontier fixed and swing out from the other

Question

Quizplus · Accepted Answer

When technology is increased in the production of one good, the production possibilities frontier will shift outward from the intercept associated with that good. The other intercept will remain the same as the technology used in the production of that good has not changed. Therefore, only option D is correct.

An Increase in the Technology Used in the Production of Only