-The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods.Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?
A)a.
B)b.
C)c

Question

-The following figure has four graphs showing the production possibilities frontier for capital goods and consumer goods.Which of the graphs below best illustrates the impact on the production possibilities frontier of a technological improvement that will make the resources used to produce consumer goods more efficient?
A)a. 
B)b. 
C)c

Quizplus · Accepted Answer

Graph C best illustrates the impact of a technological improvement that makes the resources used to produce consumer goods more efficient. This is because the production possibilities frontier (PPF) for consumer goods shifts outward, indicating that with the same amount of resources, more consumer goods can be produced due to the efficiency gained from the technological improvement. The PPF for capital goods remains unchanged, as the technological improvement specifically targets consumer goods production.

-The Following Figure Has Four Graphs Showing the Production Possibilities