On the graph of the macro production possibilities frontier (PPF), inputs
A) are on the horizontal axis and outputs are on the vertical axis.
B) are on the vertical axis and outputs are on the horizontal axis.
C) do not appear.
D) increase as you move down along the PPF.
E) increase as you move up along the PPF.

Question

Quizplus · Accepted Answer

The macro production possibilities frontier (PPF) graphically represents the maximum output combinations of two goods that an economy can produce given its resources and technology. Inputs do not directly appear on the graph; instead, the graph shows the trade-offs between the outputs of two different goods or services.

On the Graph of the Macro Production Possibilities Frontier (PPF)