PPC Shift from Resource and Technology Changes

Steps:

• Identify PPC as curve showing max output combinations of two goods with fixed resources/technology.
• Recognize shifts occur from changes in resources (inward for decrease) or technology (outward for improvement).
• Evaluate choices: A combines reduced hours (inward pressure) with productivity-boosting machine (outward shift).
• Determine net effect: Machine's gain outweighs hours loss, shifting PPC to new line YY (likely outward).

Why A is correct:

• Technological improvement via machine increases productivity, shifting PPC outward per economic definition of frontier expansion from efficiency gains.

Why the others are wrong:

• B: Incomplete; focuses only on schedule without productivity change, causing no shift.
• C: Reduces hours (resource), shifting PPC inward, not to YY.
• D: Decreases productivity, shifting PPC inward via worsened technology.

Final answer: A