Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The PPC shifts inward, indicating a decrease in production capacity.
B
The PPC remains unchanged as scarcity is unaffected by technology.
C
The PPC shifts outward, indicating an increase in production capacity.
D
The PPC becomes a straight line, indicating constant opportunity costs.
Understanding the Answer
Let's break down why this is correct
Answer
A technological advancement can shift the Production Possibilities Curve (PPC) outward, meaning that an economy can produce more goods and services than before. This happens because new technology often makes production processes more efficient, allowing for higher output with the same amount of resources. For example, if a factory adopts a new machine that speeds up production, it can produce more toys in the same amount of time, increasing overall production capacity. Scarcity, which is the limited availability of resources, still exists, but technology helps to maximize what we can achieve with those resources. Therefore, while scarcity remains a challenge, technological advancements can help us make better use of what we have, leading to more options and better living standards.
Detailed Explanation
When technology improves, we can make more goods with the same resources. Other options are incorrect because This answer suggests that technology makes us less efficient; This choice says technology doesn't change anything.
Key Concepts
technological advancement
scarcity
Topic
Production Possibilities Curve Shifts
Difficulty
medium level question
Cognitive Level
understand
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