Suppose There Is an Improvement in Technology

question 14

Multiple Choice

Suppose there is an improvement in technology.Which statement best reflects what would happen to a production possibilities frontier?  

• A) A parallel shift of the production possibilities frontier would always result. 
• B) A parallel shift of the production possibilities frontier would never result. 
• C) A movement along the production possibilities frontier would be indicated. 
• D) The production possibilities frontier would shift outward but NOT necessarily to a parallel position.

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Definitions:

Intellectual Asset

Knowledge, information, or a creative expression that has value to an organization or individual, often protected by intellectual property rights.

Knowledge

The information, understanding, and skills gained through experience or education; the theoretical or practical understanding of a subject.

Wisdom

Wisdom is the ability to use knowledge and experience with insight and judgement to make well-informed decisions.

Viscous

Describes a fluid's resistance to flow; fluids with higher viscosity flow more slowly, as in the case of honey or oil.