Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses.Now this PPF shifts inward and Andrea moves to a point on the new PPF.Which of the following would be impossible after her PPF has shifted inward compared to before the PPF shifted?
A) both of her grades to fall
B) both of her grades to rise
C) one of her grades to rise and the other grade to fall
D) one of her grades to fall while the other grade stays constant

Question

Quizplus · Accepted Answer

Since the PPF has shifted inward, Andrea can only produce less of at least one of the courses or have worse grades in at least one of the courses. Therefore, it is impossible for both her grades to rise after the PPF has shifted inward compared to before. Choices A, C, and D are all possible outcomes after the PPF has shifted inward.

Suppose Andrea Is Taking Just Two Courses and Is at a Point