An Increase in Productivity as a Result of a New

question 53

Multiple Choice

An increase in productivity as a result of a new technology would cause the production possibilities frontier to:

• A) shift inward.
• B) shift outward.
• C) remain the same.
• D) shift inward, then shift outward.

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Definitions:

Rent

Payment made by a tenant to a landlord for the use of a property, room, or apartment for a specified period.

Monopoly Profits

Extraordinary profits earned by a monopoly due to its unique position of having no competition, allowing for higher prices and lower production.

Miracle Drug

A term for a medication that has an unexpectedly profound and beneficial effect on patients.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.