Is the slope of PPF constant or varies?
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9. Which of the following statement(s) about production possibilities frontiers (PPFs) is (are) generally true? 1) the changing slope of the PPF illustrates the concept of increasing costs II) the second derivative of the PPF illustrates the concept of scarcity of resources III) the slope of the PPF illustrates the concept of opportunity costs A) only I B) only II C) only III DI & II E) I & III F) II & III G) I, II & III H) none of the three
(2) The opportunity cost of producing good X using technology A is lower than the opportunity cost of producing good X using technology B. If technology A is used, as more X is produced, _ , and if technology B is used A) we move along the PPF; the PPF shifts inward B) we move along the PPF; we move inside the PPF C) the PPF shifts outward; the PPF shifts inward D) we move outside the PPF; we move inside the PPF E) the PPF shifts outward; we move inside the PPF Andy 8 (24
Although a production possibilities frontier (PPF) is usually drawn for a country, one could be drawn for the world. Picture the world's PPF. Is the world position at a point on the PPF or below it?