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How does the introduction of mobile wireless internet likely affect Nigeria's Production Possibilities Frontier (PPF)?

Economics

ScanSolve AI Answer

Answer

B

Step-by-step solution

3 steps

The Production Possibilities Frontier (PPF) illustrates the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

  1. Analyze the impact of mobile wireless internet.

    Mobile wireless internet is a technological advancement. It can improve productivity and efficiency in various sectors. In the context of agriculture, it can provide farmers with better access to information (weather, market prices, farming techniques). In education, it can facilitate online learning, access to educational resources, and improved communication.

  2. Determine how this impact affects the PPF.

    Since mobile wireless internet can enhance productivity in both agriculture (on the X-axis) and education (on the Y-axis), it effectively increases the overall productive capacity of the economy.

  3. Evaluate the given options.

    • a) Moving the economy towards its PPF means becoming more efficient with existing resources, not expanding potential.
    • b) Moving Nigeria's PPF outwards signifies economic growth, meaning the economy can produce more of both goods due to an increase in resources or an improvement in technology. This aligns with the positive impact of mobile wireless internet on both sectors.
    • c) Swiveling the PPF towards the X-axis would imply a disproportionate increase in the potential for agriculture only.
    • d) Swiveling the PPF towards the Y-axis would imply a disproportionate increase in the potential for education only.

    Since mobile wireless internet benefits both sectors, the entire PPF shifts outwards.

    The correct option is b).

    b) Move Nigeria’s PPF outwards\boxed{\text{b) Move Nigeria's PPF outwards}}
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