As a general rule, technological progress shifts the production possibilities curve outward, away from the origin. O increases the slope of the production possibilities curve, making it steeper. shifts the production possibilities curve inward, toward the origin. O reduces the slope of the production possibilities curve, making it flatter.

As a general rule, technological progress shifts the production possibilities curve outward, away from the origin. O increases the slope of the production possibilities curve, making it steeper. shifts the production possibilities curve inward, toward the origin. O reduces the slope of the production possibilities curve, making it flatter.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter1: What Is Economics

Section: Chapter Questions

Problem 21AA

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Explain how (if at all) each of the following events affects the location of a country’sproduction possibilities curve.a.The quality of education increases.b.The number of unemployed workers increases.c.A new technique improves the efficiency of extracting copper from ore.d.A devastating earthquake destroys numerous production facilities.(a)The curve will shift out as the labor resource improves.(b)The curve will not shift, but the economy will produce further inside the curve.(c)The curve will shift out as a result of the technological improvement.(d)The curve will shift in as resources are destroyed.7
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What is production possibilities curve
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