Question
There is a technological advance that affects production in a society that is producing two major types of goods, let's say guns (military goods) and
There is a technological advance that affects production in a society that is producing two major types of goods, let's say guns (military goods) and butter (civilian goods).Assume the production possibility frontier that describes that society's economy is running at full capacity and production.The technological advance affects military goods but has little effect on civilian goods.
a. The production possibility curve would move outward equally on both the military axis and the civilian axis
b. the production possibility frontier would move outward, with the largest push outward on the axis for military goods but with hardly any movement outward on the axis for civilian goods.
c. The production possibility frontier would move outward on the axis for military goods but would move inward on the axis for civilian goods.
d. The production possibility curve would move outward equally on both the military axis and the civilian axis
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