An Improvement in Technology Would

question 136

Multiple Choice

An improvement in technology would

• A)enable the economy to produce outside its original production possibilities frontier
• B)enable the economy to move along its original production possibilities frontier
• C)eliminate scarcity; therefore, the production possibilities frontier would no longer exist
• D)have no effect on the production possibilities frontier
• E)change the production possibilities frontier to a line with a positive slope

Understand the impact of taxes and environmental fees on production decisions.

Comprehend the concept of user cost of capital and how it affects investment decisions.

Identify how the total cost of production varies with output levels and input choices.

Analyze the implications of input prices on production cost using isocost lines.

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Definitions:

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The ability to keep a limited amount of data in a readily accessible and active condition for a brief duration.

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Something that is implied or understood though not directly expressed or stated.