Regarding the production possibilities curve, an improvement in technology will
A) shift the curve o the left.
B) cause a movement downward along the curve.
C) cause a movement downward along the curve
D) shift the curve to the right.

Question

Quizplus · Accepted Answer

An improvement in technology will increase the efficiency of production, which means that a country can produce more output with the same amount of resources. This will cause a shift in the production possibilities curve to the right, indicating an increase in the maximum attainable output levels. Therefore, choice D is the correct answer.

Regarding the Production Possibilities Curve, an Improvement in Technology Will