Referring to the table in question 10, suppose improvement occurs in the
technology of producing forklifts but not in the technology of producing automobiles. Draw the
new production possibilities curve. Now assume that a technological advance occurs in
producing automobiles but not in producing forklifts. Draw the new production possibilities
curve. Now draw a production possibilities curve that reflects technological improvement in the
production of both products.
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To draw the new production possibilities curves for each scenario, we need to understand what a production possibilities curve represents. A production possibilities curve (PPC) shows the maximum possible combinations of two goods that can be produced with given resources and technology.
Scenario 1: Improvement in the technology of producing forklifts but not in producing automobiles:
In this scenario, we assume that the technology of producing forklifts has improved, making it more efficient to produce forklifts, without any change in the technology of producing automobiles. This means that the production of forklifts will become more efficient, while the production of automobiles remains the same.
To draw the new PPC, we need to show the increase in the production of forklifts. We can do this by shifting the PPC outward along the vertical axis, indicating that more forklifts can now be produced for a given level of automobile production.
Scenario 2: Technological advance in producing automobiles but not in producing forklifts:
In this scenario, we assume that a technological advance has occurred in producing automobiles, making it more efficient to produce them, without any change in the technology of producing forklifts. This means that the production of automobiles will become more efficient, while the production of forklifts remains the same.
To draw the new PPC, we need to show the increase in the production of automobiles. We can do this by shifting the PPC outward along the horizontal axis, indicating that more automobiles can now be produced for a given level of forklift production.
Scenario 3: Technological improvement in the production of both products:
In this scenario, we assume that a technological improvement has occurred in the production of both forklifts and automobiles, making it more efficient to produce both goods.
To draw the new PPC, we need to show the increase in the production possibilities for both goods. This would mean shifting the entire PPC outward, indicating that more of both goods can now be produced.
It's important to note that the specific shape of the PPC (whether it's linear or curved) and the exact positions of the new curves are not provided in the question. These details would require additional information to be accurately represented.