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Homework (Ch 02) 4. Shifts in production possibilities Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current

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Homework (Ch 02) 4. Shifts in production possibilities Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for Tools wheat, an agricultural good, and airplanes, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of airplanes. Tips 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 Tips 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. 420 350 PPF 280 AIRPLANES (Thousands) 210 0 140 70 PPE 40 BO 120 160 200 240 WHEAT (Millions of bushels)

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