Multiple Choice
A production possibilities frontier (PPF) shifts outward when:
2. Introductory Economic Models
PPF - Outward Shifts
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The country of Clutchtopia has just stumbled upon a new technology as shown on the graph.
What is the maximum amount of robots that can be produced in Clutchtopia after the shift?
A
0
B
2 thousand
C
4 thousand
D
6 thousand
Verified step by step guidance1
Identify the axes of the graph: The vertical axis represents the number of robots produced (in thousands), and the horizontal axis represents the number of pizza bagels produced (in millions).
Observe the two curves on the graph: The solid blue line represents the original production possibilities frontier (PPF), and the dashed red line represents the new PPF after the technological advancement.
Understand the concept of a PPF: A production possibilities frontier shows the maximum possible output combinations of two goods that an economy can achieve, given its resources and technology.
Locate the intercepts of the new PPF (dashed red line): The intercept on the vertical axis indicates the maximum number of robots that can be produced when no pizza bagels are produced.
Read the value of the intercept on the vertical axis for the new PPF: The intercept is at 6 on the vertical axis, indicating that the maximum number of robots that can be produced is 6 thousand.
2:49mWatch next
Master Technological Advances in an Industry with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
PPF - Outward Shifts practice set
Problem sets built by lead tutorsExpert video explanations