Analyze the effects of a new technology in the pharmaceutical industry versus a general technological advance on the PPF.

• A. Both advances will shift the PPF outward for all goods.
• B. Both advances will shift the PPF inward for all goods.
• C. The pharmaceutical industry advance will shift the PPF outward only for pharmaceuticals, while a general advance will shift the PPF outward for all goods.
• D. The pharmaceutical industry advance will have no effect on the PPF.

Answer: (C)