Asked by Victoria Montanez on May 14, 2024

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The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods.Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?

A) a.
B) b.
C) c
D) d

Technological Improvement

Innovations and advancements in technology that enhance productivity, efficiency, and quality of goods and services.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-offs in production choices.

  • Understand how modifications in resources, technological advancements, and policy alterations can influence the Position of the Production Possibilities Frontier, signifying either economic expansion or reduction.
  • Comprehend how enhancements in technology affect production efficiency and the potential output of the economy.
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Steve PrietoMay 16, 2024
Final Answer :
C
Explanation :
Graph C best illustrates the impact of a technological improvement that makes the resources used to produce consumer goods more efficient. This is because the production possibilities frontier (PPF) for consumer goods shifts outward, indicating that with the same amount of resources, more consumer goods can be produced due to the efficiency gained from the technological improvement. The PPF for capital goods remains unchanged, as the technological improvement specifically targets consumer goods production.