Question

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When the economy moves from one point on its PPF to another point on its PPF, it is illustrating a
A. tradeoff
B. movement from an unattainable point to an attainable point.
Оооо
C. free lunch
D. movement from an attainable point to an unattainable point

Answer 1

When the economy moves from one point to another on the the PPF it is illustrating a tradeoff

What is a trade off?

This is used to show the fact that more of a good was sacrificed for another good.

The amount of resources of the good A that has to be decreased and then transferred over to another good B.

The trade off is between the devotion of the resources available for the production of one of these goods against the other good.

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