Consider the graph. What will happen if technological development raises the maximum amount of goods that can be produced by the economy? a. A movement along the production possibilities curve towards the horizontal axis. b. An outward rotation of the production possibilities curve at its intersection with the vertical axis. c. An outward rotation of the production possibilities curve at its intersection with the horizontal axis. d. An outward shift of the production possibilities curve.
Consider the graph. What will happen if technological development raises the maximum amount of goods that can be produced by the economy? a. A movement along the production possibilities curve towards the horizontal axis. b. An outward rotation of the production possibilities curve at its intersection with the vertical axis. c. An outward rotation of the production possibilities curve at its intersection with the horizontal axis. d. An outward shift of the production possibilities curve.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter17: Growth And Less Developed Countries
Section: Chapter Questions
Problem 1SQP
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Consider the graph. What will happen if technological development raises the maximum amount of goods that can be produced by the economy?
a. A movement along the production possibilities curve towards the horizontal axis.
b. An outward rotation of the production possibilities curve at its intersection with the vertical axis.
c. An outward rotation of the production possibilities curve at its intersection with the horizontal axis.
d. An outward shift of the production possibilities curve.
Transcribed Image Text:Movement onto the PPF
30
25
15
10
1
2
3
4 5 6
7
8
Goods (value in trillions of dollars)
20
Services (value in trillions of dollars)
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