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Central Problems & the PPC · Question 38 of 87

In the graph, how much of Y must be given up to move from point M to 30 units of X along the PPC?

Question 38

MediumOriginal question

In the graph, how much of Y must be given up to move from point M to 30 units of X along the PPC?

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.
Options for question 38

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. At M the economy makes 20 X and 10 Y; the MRT is 0.5 Y per X.

  2. Ten more units of X cost 10 × 0.5 = 5 units of Y, leaving 5 Y.

Concept
Opportunity cost from a straight-line PPC
Typical time
70 s
Your time
—
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.