Question: Figure 2 - 6 A production possibilities frontier graph shows Civilian Goods on the horizontal axis and Military goods on the vertical axis. There are

Figure 2-6
A production possibilities frontier graph shows Civilian Goods on the horizontal axis and Military goods on the vertical axis. There are two PPFs shown on the graph. PPF sub 1 is concave to the origin. There are two points noted on PPF sub 1: ? Point A lies between the vertical intercept and point B ? Point B lies between point A and the horizontal intercept. PPF sub 2 lies to the right of PPF sub 1 and is a straight downward-sloping line. There are two points noted on PPF sub 2: ? Point C lies between the vertical intercept and point D ? Point D lies between point C and the horizontal intercept. A fifth labeled point lies between the two PPFs and it is labeled point F. Note that Point C lies directly above point A, and point D lies directly to the right of point B.
Refer to Figure 2-6. Which graph depicts a technological improvement in the production of good Y only?
a.(1)
b.(4)
c.(2)
d.(3)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!