On the vertical axis, the production possibilities frontier shows ________; on the horizontal axis, the production possibilities frontier shows ________.
A) the quantity of a good; the number of workers employed to produce the good
B) the quantity of a good; the price of the good
C) the quantity of a good; a weighted average of resources used to produce the good
D) the quantity of one good; the quantity of another good

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF typically shows the trade-offs in production volume between two choices. On each axis, it represents the quantity of one good that can be produced, given a certain quantity of the other good's production.

On the Vertical Axis, the Production Possibilities Frontier Shows ________;