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
D
You might also like to view...
To maximize profit, a perfectly competitive firm
A) should sell the quantity of output determined by the interaction between industry demand and supply. B) should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost. C) should sell the quantity of output that results in a value for total revenue that is equal to total cost. D) should produce the quantity of output that results in the greatest difference between total revenue and total cost.
If the nominal exchange rate between the U.S. dollar and the Thai baht (baht per dollar) is lower than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of profit opportunities. B) Purchasing power parity predicts that the baht is undervalued as traders take advantage of profit opportunities. C) There are opportunities for profit by purchasing goods in the United States and selling them in Thailand. D) There are no opportunities for profit by purchasing goods in one country and selling them in the other.