Consider two straight-line PPFs.They have the same vertical intercept,but curve I is flatter than curve II.The opportunity cost of producing the good on the horizontal axis
A) is greater along curve I.
B) is greater along curve II.
C) is the same along both curves.
D) cannot be compared for the two curves without more information.

Question

Quizplus · Accepted Answer

The slope of a Production Possibility Frontier (PPF) represents the opportunity cost of producing one good over another. A flatter PPF (curve I) indicates a lower opportunity cost for the good on the horizontal axis compared to a steeper PPF (curve II), where the opportunity cost is higher.

Consider Two Straight-Line PPFs