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illustrate and explain the effects of technological progress using a production curve.explain any other two factors...

illustrate and explain the effects of technological progress using a production curve.explain any other two factors which can cause a shift of the production possibility curve.

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Answer #1

A PPC is drawn showing all possible combinations of two goods (here trucks and tanks) that economy with all its available resources and latest technology can produce. It is a concave shaped curve bowed out away from origin. There can be an advancement in technology favoring marginal product of labor and / or capital. Here assuming the technological progress is not biased, it will increased productivity of resources and so PPC will shift out from all sides. This shows that now the economy can produce more of both the goods with same technology

Two other factors are immigration and a discovery of natural resources. Immigration increases labor force and so more units can be produced. Similarly more natural resources imply more physical capital and again more units can be produced. Both factors can cause a shift of the production possibility curve outwards to the right

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