PRC-3 · Chapter 9 · Question 4 of 45
A technological breakthrough completely revolutionizes the agricultural sector of a country, doubling crop yields without requiring extra land or labor. How would this be represented on the country's Production Possibility Frontier (PPF)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) An outward shift of the PPF curve
Explanation
Technological advancements that increase productive capacity allow the economy to produce more goods than before, causing the PPF to shift outward.
More Nature and Scope of Economics MCQs
- Q6Which of the following activities would be classified as an 'injection' into the circular flow of a nation's income?
- Q7The typical curvature (bowed-out shape) of a standard Production Possibility Frontier (PPF) is primarily caused by which economic principle?
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- Q9A government increases taxes heavily and reduces its own spending. How will this combined action affect the circular flow of national…
- Q10Which of the following statements best defines Lionel Robbins' renowned scarcity definition of economics?