Q. New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis, illustrate and explain how the introduction of the labor-saving innovations in manufacturing would shift the PPF. What type of production effect would occur at constant world prices (with the country being an exporter of manufactured capital goods)? Would the labor-saving innovations contribute to the economic welfare of this country or to that of the importing country?