When there is an improvement in technology, holding all else constant,
a. the production possibilities frontier will shift inward
b. society faces larger opportunity costs from shifting productive resources from one use to another
c. goods and services will increase in price
d. the economy must have some idle resources
e. the production possibilities frontier will shift outward
E
Economics
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A firm in a monopolistically competitive market determines the profit-maximizing output at which
A) MR = P. B) MR = ATC. C) MR = AVC. D) MR = MC.
Economics
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Economics