Question

A technological advance would best be represented by: A shift outward of the production-possibilities curve. A shift inward of the production-possibilities curve. A movement from inside the production-possibilities curve to a point on the production-possibilities curve. A movement from the production-possibilities curve to a point inside the production-possibilities curve.

Answer 1

Answer:

Option A-A shift outward of the production-possibilities curve.

Explanation:

The reason is that the technological advancement brings increased productivity and higher growths prospects of the products. When Henry Ford used the taylorism framework in assembling of its automobiles the result was greater efficiencies which helped him to decrease the costs significantly and increase its production by sufficient amount. This means higher the technological advances the higher are the efficiencies and if the higher are the efficiencies the higher are the productions. So the production possibility curve will move outward which shows that there are higher chances that the production will increase.