Assume the MPLc = 2 cars and the MPLb = 5 boats.There are 150
Workers in this hypothetical economy; the slope of the PPF for this
Economy is:
A)20/500.
B)200/50.
C)2/5.
D)1/5.

Question

Quizplus · Accepted Answer

The slope of the PPF (Production Possibility Frontier) is determined by the opportunity cost of producing one good over the other. Here, the opportunity cost of producing cars in terms of boats is MPLc/MPLb = 2/5.

Assume the MPLc = 2 Cars and the MPLb =