Using a Production Possibilities Curve, a Technological Advance That Increases

question 52

Multiple Choice

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 inward shift of the curve.
• B) a movement from one point to another point along the curve.
• C) an outward shift of the curve.
• D) a movement from a point on the curve to a point inside the curve.

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Definitions:

Government Securities

Financial instruments issued by a government to raise funds from the public. These can include bonds, treasury bills, and other debt instruments with a promise to pay specified sums at future dates.

Open Market Operations

Monetary policy actions where central banks buy or sell government securities in the open market to control the money supply and interest rates.

Money Supply

The overall pool of economic resources in terms of money available at a particular time in an economy, including coins, paper money, and deposits in savings and checking accounts.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.