Which of the following accurately describes what could cause the Grossman PPF to shrink inwards (as...

 

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Which of the following accurately describes what could cause the Grossman PPF to shrink inwards (as depicted in the graph below) and why? Blue is original PPF, white is new PPF₂ 2. ✔ An increase in productive time. This increase in time results in a higher rate of health depreciation, causing the PPF to shrink inward. A decline in productive time. This decrease in time results in a lower rate of health depreciation, causing the PPF to shrink inward. A decline in productive time. This decline results in less resources (time and money) available to produce health (H) and home goods (Z). An increase in productive time. This increase results in more resources (time and money) available to produce health (H) and home goods (Z). Which of the following accurately describes what could cause the Grossman PPF to shrink inwards (as depicted in the graph below) and why? Blue is original PPF, white is new PPF₂ 2. ✔ An increase in productive time. This increase in time results in a higher rate of health depreciation, causing the PPF to shrink inward. A decline in productive time. This decrease in time results in a lower rate of health depreciation, causing the PPF to shrink inward. A decline in productive time. This decline results in less resources (time and money) available to produce health (H) and home goods (Z). An increase in productive time. This increase results in more resources (time and money) available to produce health (H) and home goods (Z).

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Impairment LossCarrying Amount Recoverable amount Recoverable amountHigher of Fair value or Value in ... View the full answer