Asked by Denia Martinez on Jun 30, 2024
Verified
(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods.Technological improvements will likely:
A) shift the production possibility frontier inward to curve 1.
B) shift the production possibility frontier outward to curve 2.
C) lead to increased unemployment.
D) leave the production possibility frontier unchanged.
Production Possibility Frontier
A curve depicting the maximum achievable combination of two goods that can be produced with available resources and technology.
Technological Improvements
Advancements or enhancements in technology that lead to more efficient processes, better products, or improved ways of doing things.
Outward Shift
In economics, refers to the movement of a curve away from the origin in a graph, indicating an increase in quantity supplied or demanded due to various factors.
- Recognize how changes in technology and the availability of resources affect economic production levels.
Verified Answer
AR
Abdellah RahmouneJul 05, 2024
Final Answer :
B
Explanation :
Technological improvements will likely increase production efficiency, allowing for more goods to be produced with the same amount of resources. This will shift the production possibility frontier outward to curve 2, indicating an increase in the potential production of both consumer and capital goods.
Learning Objectives
- Recognize how changes in technology and the availability of resources affect economic production levels.