Good W is on the vertical axis and good Z is on the horizontal axis of a production possibilities curve.A technological innovation that improved labour's productivity for W but had zero effect on labour's productivity for Z would cause the production possibilities curve to
A) become steeper.
B) shift away from the origin.
C) become flatter.
D) shift towards the origin.
E) change in an unknowable way.

Question

Quizplus · Accepted Answer

The technological innovation increases the productivity of good W, allowing more of it to be produced without affecting good Z. This makes the curve steeper as the opportunity cost of producing good Z increases.

Good W Is on the Vertical Axis and Good Z