Asked by Edith Anderson on May 07, 2024
Verified
Refer to Figure 2-5. Which of the following events would explain the shift of the production possibilities frontier from A to B?
A) A decrease in unemployment
B) A general technological advance
C) A technological advance in the hat industry
D) An improvement in the allocation of resources
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.
Technological Advance
The introduction and application of new technologies and methods that improve productivity and efficiency.
Unemployment
A situation where individuals who are able and willing to work are unable to find jobs.
- Analyze the shifts and movements on the production possibilities frontier and interpret their implications.
- Understand how technological advancements affect the economy's production possibilities.
Verified Answer
Learning Objectives
- Analyze the shifts and movements on the production possibilities frontier and interpret their implications.
- Understand how technological advancements affect the economy's production possibilities.
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