In Terms of the Production Possibility Frontier, an Increase in Productivity

question 176

Multiple Choice

In terms of the production possibility frontier, an increase in productivity attributable to new technology would best be shown by

• A) a movement along the frontier.
• B) the production possibility frontier shifting outward, away from the origin.
• C) a movement from a point inside the frontier to a point on it.
• D) a movement toward the origin.

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