Consider a PPF that measures the production of quilts on the y-axis and the production of pillows on the x-axis.As the firm moves along this PPF,the production of
A)all goods other than pillows and quilts is decreasing.
B)all goods other than pillows and quilts remains constant.
C)all goods other than pillows and quilts is increasing.
D)pillows and quilts are both increasing.
E)pillows and quilts are both decreasing.

Question

Quizplus · Accepted Answer

The PPF only measures the production of pillows and quilts, so it does not take into account any other goods or services being produced. Therefore, the production of all goods other than pillows and quilts remains constant as the firm moves along the PPF.

Consider a PPF That Measures the Production of Quilts on the Y-Axis