Using a Production Possibilities Curve, a Technological Advance That Increases

question 21

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(n) :

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

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Definitions:

Industry Supply

The total output of a particular good or service that all producers in the market are willing and able to sell at a given price level, over a specific time period.

Short-Run Market Supply

The total quantity of a good or service that producers are willing and able to sell at various prices over a short period, where some production factors are fixed.

Market Price

The price of a commodity when sold in a competitive marketplace, determined by supply and demand.

Market Demand

The total demand for a product or service aggregated across all individuals in the market at various price levels.