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Suppose There Is an Improvement in Technology

Question 18

Multiple Choice

Suppose there is an improvement in technology.Which statement best reflects what would happen to a production possibilities frontier?  


A)  The economy would produce outside its original production possibilities frontier. 
B)  The economy would move along its original production possibilities frontier. 
C)  There would be no effect on the production possibilities frontier. 
D)  The production possibilities frontier would change to a line with a positive slope.

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