Multiple Choice
The country of Clutchtopia has just stumbled upon a new technology as shown on the graph.
What type of PPF shift did Clutchtopia experience?
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2. Introductory Economic Models
PPF - Outward Shifts
Multiple Choice
The country of Clutchtopia has just stumbled upon a new technology as shown on the graph.
If Clutchtopians demand 3 million pizza bagels, what is the productively efficient increase in robot production?
A
0
B
1 thousand
C
2 thousand
D
4 thousand
Verified step by step guidance1
Identify the initial production possibilities frontier (PPF) on the graph, which is represented by the solid blue line.
Locate the new technology's impact on the PPF, shown by the dashed red line, indicating an outward shift.
Determine the point on the initial PPF where 3 million pizza bagels are produced, and note the corresponding robot production level.
Find the point on the new PPF (dashed red line) where 3 million pizza bagels are produced, and note the new corresponding robot production level.
Calculate the increase in robot production by subtracting the initial robot production level from the new robot production level at 3 million pizza bagels.
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