Table 3-8
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-8. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring bread along the horizontal axis, then
A)the slope of England's production possibilities frontier would be -0.67 and the slope of Spain's production possibilities frontier would be -0.5.
B)the slope of England's production possibilities frontier would be -1.5 and the slope of Spain's production possibilities frontier would be -2.
C)the slope of England's production possibilities frontier would be -.75 and the slope of Spain's production possibilities frontier would be -1.
D)the slope of England's production possibilities frontier would be -2 and the slope of Spain's production possibilities frontier would be -.5.

Question

Table 3-8
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
​ 
-Refer to Table 3-8. We could use the information in the table to draw a production possibilities frontier for England and a second production possibilities frontier for Spain. If we were to do this, measuring bread along the horizontal axis, then
A)the slope of England's production possibilities frontier would be -0.67 and the slope of Spain's production possibilities frontier would be -0.5. 
B)the slope of England's production possibilities frontier would be -1.5 and the slope of Spain's production possibilities frontier would be -2. 
C)the slope of England's production possibilities frontier would be -.75 and the slope of Spain's production possibilities frontier would be -1. 
D)the slope of England's production possibilities frontier would be -2 and the slope of Spain's production possibilities frontier would be -.5.

Quizplus · Accepted Answer

The slope of the production possibilities frontier (PPF) is determined by the opportunity cost of producing one good over the other. If the opportunity cost of producing bread in England is 1.5 units of the other good, the slope is -1.5. Similarly, if the opportunity cost in Spain is 2 units of the other good, the slope is -2.

Table 3-8 Assume That England and Spain Can Switch Between Producing Cheese