Question

4. Shifts in production possibilities

Suppose Ireland produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and airplanes, a capital good.

4. Shifts in production possibilities Suppose Ireland produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and airplanes, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a technological advance in medicine that allows workers to live longer and have extended careers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.

Answer 1

3004 Arplanes New PPF Initial PPF 180 Wheat If the technological advance in meline allows workers to live longer & have extended careers then PPF will shift to the right because they com devote more time in producing both wheat and aussplomes, which will increase production the of both goods.