Say that a technological change doubles an economys ability to produce good X and triples the economys

Question:

Say that a technological change doubles an economy’s ability to produce good X and triples the economy’s ability to produce good Y. As a result,

a. the economy will tend to produce less X and more Y than before.

b. the opportunity cost of producing units of Y in terms of X forgone will tend to fall.

c. the production possibilities curve will shift out further along the X-axis than along the Y-axis.

d. both b and c would be true.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

Question Posted: