Answer to Question #270695 in Microeconomics for Zara

Question

Consider an economy can produce two goods butter and guns. Draw Production possibility frontier for butter and guns. Assume that scientific inventions have doubled the productivity of society's resources. Redraw the Production Possibility frontier

please explain with graph

Answer 1

The production possibility frontier of the society that produces guns and butter can be plotted as below:-

If the scientific inventions have doubles and the productivity of the resources in the butter production has been increased, the production possibility frontier will shift from the X-axis to the right that is in the case of butter. The graph can is as shown as below:-