If a New Labor-Saving Technology Is Discovered

question 32

Multiple Choice

If a new labor-saving technology is discovered,

• A)the production possibilities curve remains unchanged.
• B)the production possibilities curve shifts inward.
• C)there is movement along the production possibilities curve.
• D)society does not face a new set of tradeoffs.
• E)points that were previously unattainable to society may now be attainable.

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Definitions:

Incomplete Information

A situation where all parties in a transaction do not have full knowledge about actions, intentions, or preferences of other parties.

Economic Inefficiencies

Occurrences where resources are not allocated optimally, leading to lost potential output or welfare.

Monopsony

Market with only one buyer.

Public Goods

Public goods are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.