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PPF - Outward Shifts
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Problem 9
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PPF - Outward Shifts
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2. Introductory Economic Models / PPF - Outward Shifts / Problem 9
Problem 9
Imagine an economy that can produce either computers or textiles. If a new technology improves computer production, how should the PPF be adjusted?
A
The PPF should shift inward on the axis representing textiles, indicating decreased production capacity for textiles.
B
The entire PPF should shift outward, indicating increased production capacity for both goods.
C
The PPF should remain unchanged as the technology only affects one good.
D
The PPF should shift outward on the axis representing computers, indicating increased production capacity for computers.
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