Question

Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as a. an outward shift of the curve. b. a movement from one point to another point along the curve. c. a movement from a point on the curve to a point inside the curve. d. a flattening of the curve.

Answer 1

Answer: b. a movement from one point to another point along the curve.

Explanation:

The curve according to the statement is increasing at the same level in the inputs and outputs so it can be assumed, that the curve is not going to retract nor is it going to increase, therefore the most correct thing is that it moves from one point to a little higher because with these increases in technological savings, we say that the possibilities are going to improve and are going to increase so it would move from one point to another higher