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A country can produce either 100 bushels of wheat or 150 units of textiles, as shown on
Chapter 0, Problem 2(choose chapter or problem)
A country can produce either 100 bushels of wheat or 150 units of textiles, as shown on the graph above. If an advance in technology affects only the production of textiles, what happens to the slope of the production possibilities curve and the opportunity cost of wheat?
\(\begin{array}{|l|l|} \hline \text { Slope } & \text { Opportunity cost of wheat } \\ \hline \text { a. No change } & \text { no change } \\ \hline \text { b. decrease } & \text { decrease } \\ \hline \text { c. increase } & \text { increase } \\ \hline \text { d. no change } & \text { increase } \\ \hline \text { e. decrease } & \text { increase } \\ \hline \end{array}\)
Questions & Answers
QUESTION:
A country can produce either 100 bushels of wheat or 150 units of textiles, as shown on the graph above. If an advance in technology affects only the production of textiles, what happens to the slope of the production possibilities curve and the opportunity cost of wheat?
\(\begin{array}{|l|l|} \hline \text { Slope } & \text { Opportunity cost of wheat } \\ \hline \text { a. No change } & \text { no change } \\ \hline \text { b. decrease } & \text { decrease } \\ \hline \text { c. increase } & \text { increase } \\ \hline \text { d. no change } & \text { increase } \\ \hline \text { e. decrease } & \text { increase } \\ \hline \end{array}\)
Step 1 of 2
Given data:
A country can produce either 100 bushels of wheat or 150 units of textiles, as shown in the graph above.
An advance in technology affects only the production of textiles.
