Final answer:
The impact of a successful on-the-job training program in Ruritania would be to outwardly shift the production possibilities frontier, indicating an increase in the country's ability to produce both Widgets and Gizmos due to enhanced worker productivity.
Step-by-step explanation:
The concept in question is the production possibilities frontier (PPF), which illustrates the maximum output that a country like Ruritania can achieve with its current resources and technology levels. When discussing growth in an economy, a successful plan to provide more on-the-job training would result in an outward shift of the PPF. This shift signifies that Ruritania can now produce more of both Widgets and Gizmos than before, due to an increase in the productivity of its labor force. The training has enhanced the human capital within Ruritania, leading to a higher potential output, without any increase in physical resources.
The PPF, normally a curve, illustrates different production combinations of two goods that an economy can produce by fully utilizing its resources with the best technology available. On-the-job training, by increasing the skill level of workers, effectively improves the technology (the way in which workers can produce goods), allowing more efficient production and a greater total output. Therefore, as human capital increases through better training, the new PPF would bulge outward, indicating that for any given amount of one good, more of the other good can now be produced compared to the previous scenario.