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

question 207

Multiple Choice

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.

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Definitions:

LIFO Method

Last-In, First-Out, a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Periodic Inventory System

An inventory system that updates inventory records at specific intervals, requiring physical counts to determine inventory levels.

Cost Of Goods Sold

Direct expenditures linked to the production of goods sold by a business.

LIFO Basis

A method of inventory valuation where the last items placed into inventory are the first ones taken out for cost of goods sold calculations.