The slope of the PPF can also be expressed as:
A) the ratio of abundance of labor to capital.
B) consumer utility.
C) the opportunity cost of the good measured on the vertical axis.
D) the ratio of the marginal products of labor to the marginal product of capital.

Question

Quizplus · Accepted Answer

The slope of the Production Possibility Frontier (PPF) represents the opportunity cost of producing one more unit of the good on the vertical axis in terms of the quantity of the good on the horizontal axis that must be given up. This is because the PPF illustrates the trade-offs and opportunity costs associated with allocating resources between the production of two goods.

The Slope of the PPF Can Also Be Expressed As