10. Assuming the PPF is shifting from PPFO to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure? O a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X. O b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y. O c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product. O d) This Figure represents growth due to an increase in specialization.
10. Assuming the PPF is shifting from PPFO to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure? O a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X. O b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y. O c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product. O d) This Figure represents growth due to an increase in specialization.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 10
product Y
28
24
20
16
12
8
4
0
0
Production Possibilities Frontier
PPFO
4
8
PPFn
12
16
Point E
20
24
product X
10. Assuming the PPF is shifting from PPFO to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure?
a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X.
b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y.
This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product.
d) This Figure represents growth due to an increase in specialization.
Expert Solution
Step 1: Define production possibility frontier (PPF):
It can be defined as the graphical representation of the combination of two products that can be produced by an individual or an economy by using the given level of inputs and technology efficiently in a particular period of time.
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