An Improvement in Technology

question 191

Multiple Choice

An improvement in technology

• A)will always result in a parallel shift of the production possibilities frontier
• B)will never result in a parallel shift of the production possibilities frontier
• C)will be indicated as a movement along the production possibilities frontier
• D)will shift the production possibilities frontier outward but not necessarily to a parallel position
• E)may not shift the production possibilities frontier

---

Definitions:

Independent Events

Two or more events where the occurrence of one does not affect the probability of the other(s).

Event Will Not Occur

The probability that a specific event does not happen, which can be calculated by subtracting the event’s probability of occurring from 1.

Conditional Probability

The likelihood of one event happening after another event has already taken place.

Independent Events

Events whose occurrence or outcome is not influenced by one another; the outcome of one event does not affect the outcome of another.