PPF is negative sloped due to ________.

scarcity of production resources

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unlimited wants

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improvement in technology

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increasing opportunity cost

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Solution

The correct option is A scarcity of production resources
PPF is negative sloped due to the scarcity of production resources. PPF shows all the maximum possible combinations of two goods which can be produced with the available resources and technology. Thus more of one good can be produced only by taking resources away from the production of another good.

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