An improvement in technology:A) will always result in a parallel shift of the production possibilities frontier.B) will never result in a parallel shift of the production possibilities frontier.C) will be indicated as a movement along the production possibilities frontier.D) will shift the production possibilities frontier outward but not necessarily to a parallel position.E) may not shift the production possibilities frontier.

Question

An improvement in technology:​A) will always result in a parallel shift of the production possibilities frontier.B) will never result in a parallel shift of the production possibilities frontier.C) will be indicated as a movement along the production possibilities frontier.D) will shift the production possibilities frontier outward but not necessarily to a parallel position.E) may not shift the production possibilities frontier.

Adora Diugu · Accepted Answer

Final Answer : D, Explanation :  An improvement in technology will shift the production possibilities frontier outward, indicating an increase in efficiency and productivity. However, the shift may not be parallel, as it depends on the specific impact and application of the technology on different goods and services. Therefore, option D is the best choice as it reflects this possibility.

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