Suppose There Is an Improvement in Technology

question 18

Multiple Choice

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

• A) The economy would produce outside its original production possibilities frontier. 
• B) The economy would move along its original production possibilities frontier. 
• C) There would be no effect on the production possibilities frontier. 
• D) The production possibilities frontier would change to a line with a positive slope.

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Definitions:

Turnover Rate

The rate at which a company hires and separates employees, or the rate at which inventory or assets are replaced through sales.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Use Of Cash

A summary of how a company's cash is being utilized in operations, investments, and financing activities.

Accounts Payable

Represents money owed by a company to its creditors for goods and services purchased on credit.