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 quantities of
A)all goods other than pillows and quilts are decreasing.
B)all goods other than pillows and quilts remain constant.
C)all goods other than pillows and quilts are increasing.
D)pillows and quilts produced increase together.
E)pillows and quilts produced decrease together.

Question

Quizplus · Accepted Answer

The PPF only shows the tradeoff between two goods (pillows and quilts), so the production of all other goods is not relevant and is assumed to remain constant.

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