Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The PPC will shift outward, indicating an increase in productive capacity.
B
The PPC will shift inward, indicating a decrease in productive capacity.
C
The PPC will remain unchanged, as technology does not affect production capacity.
D
The PPC will become steeper, indicating an increase in opportunity costs.
Understanding the Answer
Let's break down why this is correct
Answer
When a country invests in new technology and improves its education system, it helps workers become more skilled, which usually means they can produce more goods and services. The Production Possibilities Curve (PPC) represents the maximum output combinations of two goods that a country can produce with its resources. With better technology and a more skilled workforce, the country can produce more of both goods, causing the PPC to shift outward. For example, if a country produces cars and computers, improved skills and technology might allow it to make more cars and computers than before, thus expanding its production capacity. This outward shift indicates economic growth and greater efficiency in using resources.
Detailed Explanation
When a country invests in technology and education, it helps workers produce more. Other options are incorrect because Some might think that changes like this reduce production; It's a common mistake to think that technology doesn't change production.
Key Concepts
Production Possibilities Curve shifts
Technological advancements
Resource allocation
Topic
Production Possibilities Curve Shifts
Difficulty
medium level question
Cognitive Level
understand
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