Question 38
MediumOriginal questionIn the graph, how much of Y must be given up to move from point M to 30 units of X along the PPC?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
At M the economy makes 20 X and 10 Y; the MRT is 0.5 Y per X.
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 timeTypical
- 70 s
- Your timeYours
- —
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