Saved Bookmarks
| 1. |
What does the slope of PPF indicate? |
|
Answer» Solution :PPF is a downward sloping CONCAVE shaped curve. (i) Its downward slope INDICATES that more of one good can be PRODUCED only by taking resources away from the production of another good. (ii) Its concave shape indicates that more and more units of one commodity have to be SACRIFICE to gain an ADDITIONAL unit of another commodity. |
|