The Following Figure Has Four Graphs Showing the Production Possibilities

question 19

Multiple Choice

The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods. Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?​ ​
Figure 2.5

• A)a.
• B) b.
• C) c.
• D) d.
• E) b and d.

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Definitions:

Public Company

A corporation whose shares are publicly traded on stock exchanges, allowing investors to buy and sell shares.

Stock Exchange

A regulated market where securities, such as stocks and bonds, are bought and sold.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues.

Investment

The operation of assigning monetary resources with the prospect of earning income or making a profit.