The Steeper the PPF

question 31

Multiple Choice

The steeper the PPF,

• A) the more of both goods are exported.
• B) the more of both goods are imported.
• C) the more of both goods are consumed.
• D) the more aggregate output takes place.
• E) the greater the comparative advantage in producing one good over another.

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Definitions:

Price

The monetary value needed to obtain a product, service, or investment.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Substitute Goods

Goods or services that serve as alternatives to each other, where a rise in the cost of one results in a higher demand for the other.

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.