In General, the Higher the Proportion of Resources Devoted to Technological

question 71

Multiple Choice

In general, the higher the proportion of resources devoted to technological research in an economy, the

• A)greater will be current consumption.
• B)faster the production possibilities frontier will shift outward.
• C)faster the production possibilities frontier will shift inward.
• D)closer it will come to having a comparative advantage in the production of all goods.
• E)more bowed out will be the shape of the production possibilities frontier.

---

Definitions:

Term Annuity

An annuity that provides regular payments over a fixed period of time, after which payments cease.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal at the end of each month, increasing the subsequent month's interest amount.

Economic Value

A measurement of the benefit provided by a good or service to an individual or society, often quantified in terms of money.

Compounded Semi-Annually

Interest that is calculated and added to the principal twice a year, resulting in increased interest earnings due to the compound effect.