Questions: Figure 2-4 shows various points on three different production possibilities frontiers for a nation. Refer to Figure 2-4. A movement from Y to Z represents an increase in the demand for plastic products, is the result of advancements in plastic production technology, is the result of advancements in food production technology, is the result of a decrease in preference for food products.

Figure 2-4 shows various points on three different production possibilities frontiers for a nation.

Refer to Figure 2-4. A movement from Y to Z represents an increase in the demand for plastic products, is the result of advancements in plastic production technology, is the result of advancements in food production technology, is the result of a decrease in preference for food products.

Transcript text: Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation. Refer to Figure 2-4. A movement from $Y$ to $Z$ represents an increase in the demand for plastic products. is the result of advancements in plastic production technology. is the result of advancements in food production technology. is the result of a decrease in preference for food products.

Solution

Solution Steps

Step 1: Understand the Production Possibilities Frontier (PPF)

The PPF shows the maximum possible output combinations of two goods that can be produced with available resources and technology. Points on the curve represent efficient production levels, while points inside the curve represent inefficient production, and points outside the curve are unattainable with current resources.

Step 2: Analyze the Movement from Y to Z

The movement from point Y to point Z on the PPF indicates a shift to a new production possibility. This shift suggests a change in the production capacity or efficiency of the nation.

Step 3: Determine the Cause of the Shift

The shift from Y to Z represents an outward movement of the PPF, which typically indicates an improvement in production capabilities. This can be due to advancements in technology or an increase in resources.