Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6
-Refer to Figure 2.6. An improvement in technology may be represented by a
A) shift from ppf2 to ppf1.
B) shift from ppf1 to ppf2.
C) movement along ppf2.
D) movement along ppf1.

Question

Refer to the information provided in Figure 2.6 below to answer the questions that follow.  Figure 2.6
-Refer to Figure 2.6. An improvement in technology may be represented by a
A) shift from ppf2 to ppf1. 
B) shift from ppf1 to ppf2. 
C) movement along ppf2. 
D) movement along ppf1.

Quizplus · Accepted Answer

A shift from ppf1 to ppf2 represents an improvement in technology, which allows for more efficient production and an increase in potential output for both goods. This shift represents the ability to produce more of both goods with the same resources, whereas a movement along ppf1 or ppf2 only represents a change in the mix of goods produced using the same level of technology and resources.

Refer to the Information Provided in Figure 2