The Slope of the PPF Can Also Be Expressed As

question 76

Multiple Choice

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.

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Definitions:

Target Pre-tax Income

The income goal set by a company before any taxes are applied.

Contribution Margin Per Unit

The difference between the selling price per unit and the variable cost per unit.

Pretax Income

The amount of income earned by a business before any taxes have been deducted, reflecting the company's profitability.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.