The following graph shows a PPC for the imaginary country of Caldonia producing flyboats and time-stopping watches.Suppose a technological change improves production of time-stopping watches. So Caldonia can make more time-stopping watches with thesame amount of resources, whereas production of time-stopping watches does not change.Adjust the vertical and horizontal intercepts of the PPC to show the effect of the the technological change on Caldonia's economy. (Hint: Do not movethe intercept if the production of a good is not affected.)Quantity of time-stopping watchesPPCQuantity of flyboatsBefore the technological change, point X wasfirst box unattainable inefficient efficientsecond box unattainable inefficient efficientPPCand after the event, it is

Production possibility frontier shows all the combinations of the two goods that an economy can…

Answered: Before the technological change, point…

Before the technological change, point X was first box unattainable inefficient efficient second box unattainable inefficient efficient and after the event, it is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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