Technological Bias in PPF Shift

Steps:

• Identify the diagram as a Production Possibility Frontier (PPF) showing trade-offs between cars and another good.
• Recognize that improved technology for cars only increases productivity in that sector, expanding maximum car output while leaving the other good unchanged.
• Locate point Q on the original PPF, representing current production.
• Determine the shift: the new PPF bows out more on the cars axis, so movement from Q to a point like X on the new frontier shows increased car production at same other good level.

Why B is correct:

• Option B (Q to X) depicts the biased outward shift along the cars axis, per PPF theory where sector-specific innovation alters the curve asymmetrically.

Why the others are wrong:

• A (Q to W): Likely an inward shift or inefficient point, not reflecting technological gain.
• C (Q to Y): Represents movement along the original curve, indicating reallocation, not expansion.
• D (Q to Z): Shows a uniform outward shift, ignoring the technology's car-specific nature.

Final answer: B