Question

4. Shifts in production possibilities Suppose Canada produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good Drag the production possibilities frontier (PPF) on the graph to show the effects of an agricultural innovation that increases the crop yield of each acre of land 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 0 450 PPF 360 270 180 90 PPF 50 100 150 200 250 300 CORN (Millions of bushels)

Answer 1

If the innovation has increased the production of corn per acre of land that will shift the PPF outward as the economy can now produce more corn. The new PPF is shown below.

Number are not important just the shift as the question doesn;t mention how much the production will increase.