Which of the following will most likely happen when better technology is used in production?
A) an upward movement along the production possibilities curve
B) an outward shift of the production possibilities curve
C) an inward shift of the production possibilities curve
D) a downward movement along the production possibilities curve

Question

Quizplus · Accepted Answer

Better technology in production leads to increased efficiency and productivity, resulting in an increase in the potential output of the economy. An outward shift of the production possibilities curve represents an increase in the economy's potential output. Therefore, the most likely outcome of using better technology in production is an outward shift of the production possibilities curve.

Which of the Following Will Most Likely Happen When Better