A country produces 2 goods: C and T. This country is at a point "A" on its bowed out PPF where the slope of the PPF is equal to the slope of the CIC touching that same point.
a. If the outputs of the two goods changed so as to move down along the PPF, would standards of living rise, fall or stay the same? Demonstrate graphically and explain your answer. On your graph, place T on the vertical axis and C on the horizontal axis, and make sure you label everything including the CICs, the PPF, point A, and anything else you add to your graph.