Exhibit 2-7
a.

b.

C.
d.

-Refer to the exhibit.Suppose a technological improvement occurs, one that will make efficient use of the resources used to produce consumer goods.Which graph best illustrates the impact on the production possibilities frontier?

Question

Exhibit 2-7
 a.
 
 b.
 
 C. 
 d.

-Refer to the exhibit.Suppose a technological improvement occurs, one that will make efficient use of the resources used to produce consumer goods.Which graph best illustrates the impact on the production possibilities frontier?

Quizplus · Accepted Answer

Graph C shows an outward shift in the production possibilities frontier, indicating that the technological improvement allows for more efficient use of resources, thus increasing the potential output of consumer goods without sacrificing the production of other goods.

Exhibit 2-7 A