The country of Clutchtopia has just stumbled upon a new technology as shown on the graph.
What type of PPF shift did Clutchtopia experience?

• A. Technological advance in the production of robots
• B. Technological advance in the production of pizza bagels
• C. General increase in the productivity of technology
• D. Decrease in pizza bagel production efficiency

Answer: (A)

Verified step by step guidance

1. Examine the graph provided, which shows the Production Possibility Frontier (PPF) for Clutchtopia. The PPF illustrates the trade-offs between producing robots and pizza bagels.
2. Notice the two curves on the graph: the original PPF (solid blue line) and the new PPF (dashed red line). The shift from the blue line to the red line indicates a change in production capabilities.
3. Observe that the new PPF (dashed red line) is outward from the original PPF (solid blue line) for both robots and pizza bagels, suggesting an increase in production capacity.
4. Determine the nature of the shift by analyzing which axis (robots or pizza bagels) experienced a more significant change. If the shift is more pronounced along one axis, it indicates a technological advance specific to that good.
5. Conclude that if the shift is more significant along the robots axis, it suggests a technological advance in the production of robots. If the shift is more significant along the pizza bagels axis, it suggests a technological advance in the production of pizza bagels. If the shift is uniform, it indicates a general increase in productivity. If the PPF shifts inward, it would indicate a decrease in efficiency.