A Technological Improvement in the Production of Good a

question 100

Multiple Choice

A technological improvement in the production of good A

• A)decreases the supply of A.
• B)increases the demand for A.
• C)decreases the equilibrium price of A and decreases the equilibrium quantity.
• D)decreases the quantity demanded of A.
• E)increases the supply of A.

---

Definitions:

Production Possibility Curve

A graph that shows the maximum number of possible units a company can produce of two products given a set of inputs, reflecting the trade-off and opportunity cost of producing one product over another.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.

Exchange Rate

The monetary worth assigned to one currency when converting it to another currency.

United States

A country located in North America, consisting of 50 states and a federal district, known for its diverse geography and economy.