Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. Technological progress will cause a A) movement from Point A to Point B. B) movement from Point B to Point A. C) shift from ppf₂ to ppf_1. D) shift from ppf₂ to ppf_3.

Question

Quizplus · Accepted Answer

Technological progress shifts the production possibilities frontier (ppf) outward, indicating an increase in potential output. This shift is reflected by a movement from ppf₂ to ppf_3., which means that more goods and services can be produced with the same resources. Therefore, the best choice is D.

Refer to the Information Provided in Figure 16