Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased Resource Allocation
B
Reduced Production Capacity
C
Improved Efficiency
D
Decreased Comparative Advantage
Understanding the Answer
Let's break down why this is correct
Answer
The Production Possibilities Curve (PPC) shows how an economy can use its resources to produce different goods. When there is a technological advancement, the curve shifts outward, meaning the economy can produce more of both goods with the same resources. Opportunity cost, on the other hand, refers to what you give up when you choose one option over another. For example, if a factory decides to produce more cars instead of trucks, the opportunity cost is the number of trucks it could have made instead. In this way, just as technology helps increase production possibilities, understanding opportunity cost helps us make better choices about resource use.
Detailed Explanation
When technology improves, we can make more with the same resources. Other options are incorrect because Some might think that more resources mean better outcomes; This option suggests we can produce less, which is the opposite of what happens with better technology.
Key Concepts
Production Possibilities Curve
Opportunity Cost
Economic Growth
Topic
Production Possibilities Curve Shifts
Difficulty
easy level question
Cognitive Level
understand
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