Technological innovations will cause: a. the production possibilities curve to shift to the left....
Question:
Technological innovations will cause:
a. the production possibilities curve to shift to the left.
b. the production possibilities curve to shift to the right.
c. the production possibilities curve to stay the same.
d. an economy to operate below its production possibilities curve.
Production Possibility Curve:
In economics, the term production possibility curve refers to the combination of two products/services that a nation can produce by using the available resources more judiciously.
Answer and Explanation: 1
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View this answer- Technological innovations will cause b. the production possibilities curve to shift to the right.
When there is a technological innovation in an...
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Shifts in the Production Possibilities Curve
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Chapter 1 / Lesson 5
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Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.
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- Shifting the production possibilities curve An outward shift of an economy's production possibilities curve is caused by a. entrepreneurship. b. an increase in labor. c. an advance in technology. d. all of the above.
- Economic growth can be pictured in a production possibilities curve diagram by: a. shifting the production possibilities curve out. b. moving from right to left along the curve. c. moving from left to right along the curve. d. shifting the production poss
- An increase in a country's technology would most likely: A. move the country further up its production possibilities curve. B. move the country to a point closer to its production possibilities curve C. shift its production possibilities curve to the righ
- On a production possibilities curve, growth is represented by: a. a movement down the production possibilities curve. b. a movement up the production possibilities curve. c. an outward shift of the production possibilities curve. d. an inward shift of the
- Economic growth causes the: A. a production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward. B. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward. C
- On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by: a. movement along the curve. b. movement from a point outside the curve to a point on the curve. c. movement from a point inside the curve to a
- An improvement in technology causes the production possibilities frontier (PPF) to? a. shift to the right. b. pivot upward. c. shift to the left. d. pivot downward.
- Economic growth in the long run: 1- shifts the production possibility curve outwards 2- moves the economy along the production possibilities curve 3- shifts the aggregate demand curve to the left 4- m
- On a production possibilities curve, unemployment is represented by: a. a point on the production possibilities curve. b. the points at which the production-possibilities curve touches each axis. c. a point below or to the left of the production possibili
- A war would most likely: a. Make the production possibilities curve flatter b. Shift the entire production possibilities curve outwards c. Shift both of the economic sectors' intercepts inwards d. Make the production possibilities curve steeper
- If there is an increase in labor productivity: a) the production possibilities curve would shift outward and the long-run aggregate supply curve would shift rightward. b) the production possibilities curve would shift inward and the long-run aggregate sup
- Opportunity costs are reflected by: a. A swap of one technology for another along a nation's production possibilities curve. b. The negative slope of a nation's production possibilities curve. c. That fact that no matter what you choose you will be worse
- An outward shift of an economy's production possibilities curve is caused by: a. entrepreneurship b. an increase in labor c. an advance in technology d. all of the above
- Product C is an input to the production of Product D. Ceteris paribus, a technological improvement in the production of Product C will cause the market supply curve for Product D to: a) not shift b) shift to the left c) not enough information to answer th
- On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by which of the following? a. movement along the curve b. movement from a point outside the curve to a point on the curve c. movement from a point
- An increase in an economy's productive resources a. implies that the law of increasing costs no longer applies. b. shifts its production possibilities curve inward. c. shifts its production possibilities curve outward. d. has no effect on its production p
- When an economy grows, its production possibilities frontier: a. shifts to the right. b. shifts to the left. c. shifts upward. d. shifts downward.
- Economic growth would be represented by a(n): a. leftward shift in the long-run aggregate supply curve (LRAS). b. inward shift of the production possibilities curve. c. rightward shift in the long-run aggregate supply curve (LRAS). d. movement along the l
- The production possibilities curve will shift outward, upward, and \ or, to the right when? A) corporate profits increase. B) Economic growth occurs. C) Resources are used more efficiently. D) there is a reduction in labour.
- Which of the following is true about the production possibilities curve when technological progress occurs? a. shifts inward to the left b. shifts outward to the right c. becomes flatter at one end and steeper at the other end d. becomes steeper e. does n
- Which of the following is true about the production possibilities curve when a technological progress occurs? a. Shifts inward to the left b. Becomes flatter at one end and steeper at the other end c. Becomes steeper d. Shifts outward to the right e. Does
- An outward shift of an economy's production possibilities curve is caused by an: a. increase in capital. b. increase in labor. c. advance in technology. d. All of the answers are correct.
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a. A change in the endowment of resources, b. A change in technology, c. A change in the production of one good relative to another good, d. A ch
- As you move left to right on a linear production possibilities frontier (PPF), the opportunity cost of producing the good on the vertical axis: a. decreases. b. increases. c. stays the same. d. increases then decreases.
- Unemployment: A. causes the production possibilities curve to shift outward. B. can exist at any point on a production possibilities curve. C. is illustrated by a point outside the production possibilities curve. D. is illustrated by a point inside the pr
- A nation's production possibilities curve is "bowed out" from the origin because a. resources are not perfectly adaptable to the production of alternative goods. b. capital goods and consumer goods utilize the same production technology. c. resources are
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a) a change in the endowment of resources b) a change in technology c) a change in the production of one good relative to another good d) a chang
- Economic growth could be portrayed as: a. Inward shift from the production possibilities Frontier b. outboard shift from the production possibilities Frontier c. movement from one point to another poi
- An advance in technology in the production of good X causes a) the supply curve for good X to change from upward sloping to vertical. b) the supply curve for good X to change from vertical to upward sloping. c) a rightward shift in the supply curve for
- As you move from left to right along a production possibilities frontier (PPF) that is bowed out from the origin, the opportunity cost of producing the product on the horizontal axis increases. As
- In reference to the concept of economic growth, explain the difference between a movement along an existing production possibility curve and an outward shift in a production possibility curve.
- An outward shift of an economy's production possibilities curve is caused by which of the following? a. entrepreneurship b. an increase in labor c. an advance in technology d. all of the above
- Which of the following is true about the production possibilities curve when a technological progress occurs? a. Shifts inward to the left b. Becomes flatter at one end and steeper at the other end c. Becomes steeper d. Shifts outward to the right e.
- Key Concept: Economic growth An outward shift of an economy's production possibilities curve is caused by an a. Increase in capital. b. Increase in labor. c. Advance in technology. d. All of the answers are correct
- Production possibilities curves reflect: A. Constant opportunity costs if technology is held constant, no matter what skills the factors of production have. B. Maximum efficiency in the production of all outputs, given that technology does not change. C.
- If the red curve is the production possibilities frontier (PPF) derived by the production function, then a) Any point that lies to the left of the PPF is unattainable. b) Any point that
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- Improvements in technology will shift an economy's production possibilities curve a. inward, then outward. b. outward, then inward. c. outward. d. inward.
- According to the neoclassical growth model, a technological change [{Blank}] and a change in the capital stock [{Blank}]. a) Shifts the productivity curve; shifts the productivity curve, b) Shifts the productivity curve; creates a movement along the pro
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- Technological changes that increase productivity shift the A. production function forward. B. average total cost curve downward. C. marginal cost curve upward as output increases. D. all of the above
- A production possibilities curve is negatively sloped because: a. Once on the frontier, it is only possible to increase production of one good by reducing production of the other b. The price of a goo
- A point beyond (to the right of) the production possibilities curve illustrates: a. a production combination of no inflation and no price changes over time. b. a production outcome that cannot be achieved at this point in time. c. that resources are not u
- Along a production possibilities curve, an increase in the production of one good can be accomplished only by: a. decreasing the production of another good. b. increasing the production of another good. c. holding constant the production of another good.
- When an economy sacrifices the production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will: a. shift about in random fashion b. shift inward c. shift outward d. become a straight line
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- If an economy's production possibilities curve has shifted out, we can unambiguously conclude that: a. the supply of natural resources increased. b. potential GDP increased. c. technology improved. d. the supply of labor increased.
- When constructing a typical production possibilities curve, economists assume a. economic resources are underutilized. b. resources are equally productive in many alternative uses. c. all available resources are fully employed. d. production technology is
- The production possibilities curve will shift outward (upward, and or, to the right) when what?
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- The curve that shows different combinations of inputs that yield the same level of output is called _________. a) an Isoquant b) an Isocost curve c) a Production function d) a Production possibility curve
- Which of the following causes the production possibilities curve to shift to the right? a) A war. b) d and e. c) The development of a new technology that improves productivity. d) c and e. e) The discovery of oil reserves.
- What is the Production Possibilities Curve? Give a personal example of a production possibilities curve.
- An economy can produce various combinations of food and shelter along a production possibilities curve (PPC). Suppose a technological innovation resulted in a new, higher-yielding crop that generated more bushels of grain for a given set of land, labor, a
- Which of the following will cause the production possibilities curve for two goods to shift to the left? Select one: a. An increase in the amount of resources needed to produce the goods. b. A decrease in the technology used to produce the goods. c. An
- Economic growth can be represented by Select one: a. a movement down the production possibilities frontier (PPF). b. a movement up the production possibilities frontier (PPF). c. an inward shift of the production possibilities frontier (PPF). d. an ou
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will decl
- An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-sloped straight line, what is the implication in opportunity costs? Will the law of increasing costs still hold?
- A point outside the production possibilities curve is: A. unattainable without economic growth. B. attainable and the economy is efficient. C. unattainable without inflation. D. attainable, but the economy is inefficient.
- On a production possibilities curve, production is efficient if Select one: a. the production combination of goods is inside the curve. b. the production combination of goods is outside the curve. c. the production combination of goods is on or inside
- Different types of labor, capital, and natural resources have different capabilities to produce goods and services. In the Production Possibility Frontier (Curve) model, this phenomenon implies an) [{Blank}] opportunity cost and a [{Blank}] shaped curve.
- Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods. Suppose a major technological breakthrough occurs in the capital goods industry and the new technology is widely adopted only in this industry. Dr
- Education and training that improve the skill of the labor force are represented on the production possibilities curve by a(n): a. movement along the curve. b. inward shift of the curve. c. outward shift of the curve. d. movement toward the curve from an
- On a production possibility frontier, opportunity cost is: a. independent of the slope of the curve. b.the decrease in the output of one good when the output of the other good is increased. c. the
- A production possibilities curve shows the various combinations of two outputs that: a. consumers would like to consume. b. producers would like to produce. c. an economy can produce. d. an economy should produce.
- The economy is at a point below the production possibilities curve. What is the most likely explanation for this? a. All resources are not being utilized or a technical inefficiency exists in the production process b. A technical efficiency exists in a
- A non-linear (bending) production possibilities model assumes that A. Some land or labor is more productive in one use than another B. Technology can advance C. the opportunity cost of producing more of something will remain constant
- A point on the frontier of the production possibilities curve is: a. attainable and the economy is efficient. b. attainable, but the economy is inefficient. c. unattainable and the economy is ineffici
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will declin
- A non-linear ("bending") production possibilities model assumes that: a. technology can advance. b. all combinations of output are possible c. the opportunity cost of producing more of something will remain constant. d. some land or labor is more producti
- The idea of increasing opportunity cost is reflected in the: a. linear shape of the production possibilities frontier. b. bowed in shape of the production possibilities frontier. c. bowed out shape of the production possibilities frontier. d. positive slo
- A point that lies inside the Production Possibilities Curve may be caused by _____.
- The bowed-out (concave) shape of a production possibilities frontier, A) is due to capital accumulation. B) is due to technological change. C) reflects the existence of increasing opportunity cost. D) is due to the equal use of resources in all activities
- Illustrate opportunity cost with a production possibilities curve (this would involve any two products and numbers). What would the production possibilities curve actually mean?
- Along a given production-possibilities curve involving two goods, producing more of one good requires that: a. a better technology be employed. b. more of the other good be produced. c. less of the other good be produced. d. the production of the other go
- A production possibilities curve that shows the Law of Increasing Opportunity Costs would be: A. concave from the origin B. convex from the origin C. a diagonal line D. a vertical line E. a horizontal line
- Unemployment would cause an economy to a. experience an inward shift of its production possibilities frontier. b. produce outside its production possibilities frontier. c. produce inside its productio
- Draw and explain the production possibilities curve, noting the point that are feasible, efficient, inefficient, not feasible, and possible movements of the curve.
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as non-renewable resources will dec
- A production possibilities frontier will be bowed out if: a) There is scarcity, b) Technology is improving, c) Production of one good involves an opportunity cost, d) Resources are not perfectly adaptable to making each good, e) Resources are used efficie
- A factory recently added new robots to its production line, increasing productivity. This will likely cause: A. a leftward shift of the supply curve. B. a movement up along the supply curve. C. a r
- For an economy to produce at a point beyond its production possibilities curve, the economy can: A. use its current set of resources more efficiently B. charge lower prices C. charge higher prices D.
- While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be: a. bowed outward b. bowed inward c. positively sloped d. a straight l
- Generally, opportunity costs increase and the production possibilities frontier bows outward. Why? a. Unemployment is inevitable. b. Resources are not equally useful in all activities. c. Technology is slow to change. d. Labor is scarcer than capital.
- If a country is producing efficiently, it will produce __ its production possibilities curve. If a country is producing inefficiently, it will produce __ its production possibilities curve. a. above; on b. above; below c. below; on d. on; below
- In what ways are the bowed-out shape of the production possibilities curve and the law of increasing opportunity cost related?
- As one progresses from a one-person economy to a large, multi-person economy, the shape of production possibilities curve changes from: a. downward sloping to upwards sloping. b. linear to convex (bowed into the origin). c. concave (bowed out from the ori
- Which would be least likely to cause the production possibilities curve to shift to the right? a. An increase in the labour force b. Improved methods of production c. An increase in the education and training of the labor force d. A decrease in unempl
- Increasing opportunity costs of producing goods imply that the production possibilities curve will be: a. downward sloping. b. upward sloping. c. bowed inward. d. bowed outward.
- Does a change in producer technology lead to a movement along the supply curve or to a shift in the supply curve?
- Which would be least likely to cause the production possibilities curve to shift to the right? a. An increase in the labor force b. Improved methods of production c. An increase in the education and training of the labor force d. A decrease in unemplo
- A production possibilities frontier that is a downward- sloping straight line implies a) no economies of scope. b) diseconomies of scale. c) economies of scale. d) economies of scope.
- Education and training that improve the skill of the labor force are represented on the production possibilities curve by which of the following? a. a movement along the curve b. an inward shift of the curve c. an outward shift of the curve d. a movement
- The production possibilities frontier is a straight line when: a. The opportunity cost is zero, b. The opportunity cost is constant, c. The opportunity cost is increasing, d. The opportunity cost is decreasing.
- In the production possibilities frontier framework, unemployment is represented by: A) an inward shift of the curve. B) a point located inside the curve. C) a point located outside the curve. D) a point located on the curve.
- Other things equal, which of the following would shift an economy's production possibilities curve to the left? A) The discovery of a low-cost means of generating and storing solar energy. B) The entr
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