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What Happens as the Economy Moves Along This PPF? As the Economy Moves Along This PPF, the Quantities of __ A. All Goods Other Than

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What happens as the economy moves along this PPF? As the economy moves along this PPF, the quantities of __ A. all goods other than pizza and lasagne remain constant B. pizza and lasagne are either increasing or decreasing, so there is no scarcity C. all goods other than pizza and lasagne are decreasing D. all goods other than pizza and lasagne are increasing

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D. all goods other than pizza and lasagne are increasing

Daha Fazla

## Step 1The Production Possibility Frontier (PPF) is a curve that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. In this case, the PPF is a straight line, indicating constant opportunity costs.## Step 2As the economy moves along this PPF, it means that the economy is reallocating resources from the production of one good to the production of another. This is because the PPF represents the maximum possible output combinations of two goods or services.## Step 3The movement along the PPF does not imply that the quantities of all goods other than pizza and lasagne remain constant. This is because the PPF is a curve that shows the maximum possible output combinations of two goods or services, not the quantities of all goods.## Step 4The movement along the PPF does not imply that pizza and lasagne are either increasing or decreasing, so there is no scarcity. This is because the PPF is a curve that shows the maximum possible output combinations of two goods or services, not the quantities of goods.## Step 5The movement along the PPF does not imply that all goods other than pizza and lasagne are decreasing. This is because the PPF is a curve that shows the maximum possible output combinations of two goods or services, not the quantities of goods.## Step 6The movement along the PPF does imply that all goods other than pizza and lasagne are increasing. This is because the PPF is a curve that shows the maximum possible output combinations of two goods or services, not the quantities of goods.