4. Shifts in production possibilities
Suppose the fictional country of Katmai produces two types of goods: agricultural and capital. The following diagram shows its current production
possibilities frontier for rice, an agricultural good, and electric generators, a capital good.
Drag the production possibilities frontier (PPF) on the graph to show the effects of a technological advance in medicine that allows workers to live
longer and have extended careers.
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will
snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.