Suppose that, in a PPF graph, wheat is on the vertical axis and jets are on the horizontal axis. Moving down along the PPF, the
A) number of jets increases and the opportunity cost of jets increases.
B) amount of wheat increases and the opportunity cost of wheat decreases.
C) number of jets increases and the opportunity cost of jets decreases.
D) amount of wheat increases and the opportunity cost of wheat increases.
E) opportunity cost of jets and wheat both increase.

Question

Quizplus · Accepted Answer

As you move down along the PPF, you produce more jets, which means you have to give up more wheat, increasing the opportunity cost of producing additional jets.

Suppose That, in a PPF Graph, Wheat Is on the Vertical