Question

Suppose that an economy originally has a bowed outward production possibilities frontier (PPF) for military goods and civilian goods. An improvement in technology that allows only more military goods to be produced, but not more civilian goods, would cause ________.a. fewer military goods will be produced

b. more civilian goods will be produced
c. the opportunity cost of producing military goods will rise
d. there will be productive inefficiency in the economy
e. the production possibilities frontier will pivot outward around the axis for military goods

Answer 1

e. the production possibilities frontier will pivot outward around the axis for military goods.

Explanation:

An improvement in technology that allows only more military goods to be produced, but not more civilian goods, would cause the production possibilities frontier will pivot outward around the axis for military goods.