3
QuizMultiple Choice

Production Possibilities Curves

Question 3 • LA-Financial Math A

As displayed on a production possibilities curve, what will an increase in technology allow a society to do?

Answer
A
Produce more, as long as the resources are also available.
B
Produce less, because more resources are spent on developing technology.
C
It will not affect society’s production.
D
The society will spend more on the same level of production.

Explanation

An increase in technology makes resources more productive, so the production possibilities curve shifts outward. This allows society to produce more goods and services, provided the resources needed for production are available. The best answer is “Produce more, as long as the resources are also available.”

AI-written and checked against the verified answer.

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