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
Question 2
Which of the following would shift the production possibilities frontier outward?
a. a reduction in inefficiency
b. a reduction in the size of the labor force
c. an improvement in technology
d. a change in the combination of goods produced
e. increasing opportunity costs
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