A Major Technological Advance Would Be Represented on a Production

question 52

Multiple Choice

A major technological advance would be represented on a production possibilities curve by a(n) :

• A) movement off the production possibilities curve toward a point outside the curve.
• B) movement toward the curve from a point inside the curve.
• C) outward shift of the entire curve.
• D) movement to the left along the curve to a higher point.

---

Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given income and prices of the goods.

Money Income

This term describes the total earnings received by an individual or household, including wages, salaries, and other forms of monetary income.

Substitution Effect

A phenomenon where consumers replace a more expensive item with a cheaper alternative when the price rises.

Product Quality

The attributes and characteristics of a product that determine its ability to satisfy customer needs and demands.