A Technological Improvement in Producing Good a Would Cause

question 10

Multiple Choice

A technological improvement in producing good A would cause:

• A) a shift to the right of the supply curve for A.
• B) a shift to the left of the supply curve for A.
• C) a movement upward and to the right along the supply curve for A.
• D) a movement downward and to the left along the supply curve for A.

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Definitions:

World Price

The international market price of a good or service, determined by global supply and demand, that influences local market prices and trade policies.

Export

The process of selling goods or services produced in one country to other countries.

Absolute Advantage

A situation where a country or individual can produce more of a good or service with the same amount of resources than others.

Competitive

A market situation where multiple firms or entities vie for the same customers or market share.