Use the production possibility curve of a country represented in the diagram above to this questions.An improvement in technology will enable the country to...

Use the production possibility curve of a country represented in the diagram above to this questions.An improvement in technology will enable the country to produce at

Answer Details

An improvement in technology will enable the country to produce at a point outside of its current production possibility curve (PPC). This is because an improvement in technology would allow the country to produce more output with the same amount of inputs or the same output with fewer inputs. In the diagram, the current production possibility curve represents the maximum amount of two goods that a country can produce given its current level of technology and resources. If technology improves, the country can produce more of both goods than it could before, allowing it to reach a point outside of the original PPC. Therefore, the answer to this question is that an improvement in technology will enable the country to produce at a point beyond Z, which represents its original PPC. The new production point will depend on the magnitude of the technology improvement and the specific production possibilities of the two goods. It could be anywhere on a new PPC that lies outside the original one.