The PPC in the graph is a straight line. What is the marginal rate of transformation of X into Y? A straight-line PPC for goods X and Y, from 20 units of Y (no X) to 40 units of X (no Y). Point M (20 X, 10 Y) lies on it.

The PPC in the graph is a straight line.

Question 36

MediumOriginal question

The PPC in the graph is a straight line. What is the marginal rate of transformation of X into Y?

A straight-line PPC for goods X and Y, from 20 units of Y (no X) to 40 units of X (no Y). Point M (20 X, 10 Y) lies on it.

2 units of Y for each unit of XCorrect answerYour answer0.5 unit of Y for each unit of XCorrect answerYour answer1 unit of Y for each unit of XCorrect answerYour answerIt rises along the lineCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

The line runs from 20 units of Y to 40 units of X: giving up all 20 Y gains 40 X.
MRT = ΔY / ΔX = 20 / 40 = 0.5 unit of Y per unit of X, the same everywhere on a straight line.

Worth noting

2 is the inverse: X given up per unit of Y.

Concept: MRT on a straight-line PPC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe production possibility curve

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

The PPC in the graph is a straight line.

Question 36

Explanation