Efficiency gains move production from inside to the PPC frontier

Steps:

• Identify inefficiency: Traditional methods with part-time family labor place production inside the PPC (e.g., at points S or T).
• Recognize improvement: Better working practices increase efficiency without changing resources, moving output toward the frontier.
• Locate points: Assume T is inside the curve and R is on the frontier, representing fuller resource use.
• Determine direction: Shift from inefficient T to efficient R shows higher output of both goods.

Why C is correct:

• C (T to R) depicts moving from an inefficient point inside the PPC to the production frontier, reflecting improved efficiency per economic theory.

Why the others are wrong:

• A (S to T): Both inside the curve; no efficiency gain, just reallocation.
• B (S to R): Possible but assumes S is starting inefficiency; question implies part-time labor as deeper inefficiency at T.
• D (T to S): Moves deeper inside the curve, worsening inefficiency.

Final answer: C