Consider Two Straight-Line PPFs

question 120

Multiple Choice

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 vertical 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.

---

Definitions:

Married Taxpayer Filing Separately

A tax filing status for married couples who choose to file their tax returns separately.

Itemized Deductions

Expenses allowed by the IRS that can be deducted from adjusted gross income to reduce taxable income, including charitable donations, medical expenses, and mortgage interest.

Standard Deduction

The portion of income not subject to tax, set by the IRS, that can be used to reduce your taxable income if you choose not to itemize deductions.

Standard Deduction

A fixed amount deducted from income before income tax is calculated, available to all taxpayers who do not itemize their deductions.