A technological advance that increases the productivity of all inputs is best illustrated as:
a. a movement along the production possibilities curve.
b. a flattening of the production possibilities curve.
c. an inward shift of the production possibilities curve.
d. an outward shift of the production possibilities curve.
Question 2
Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments.
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Effect of an Increase in Technological Progress