Question 49
HardOriginal questionAssertion (A): A PPC is convex to the origin.
Reason (R): The marginal rate of transformation rises along a PPC.
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
A rising MRT makes the PPC concave (bowed out) to the origin, not convex, so A is false.
R is the standard reason for the PPC's shape and is true.
Worth noting
Convex to the origin describes an indifference curve, which has a falling MRS.
- Concept
- Concave, not convex
- Typical timeTypical
- 100 s
- Your timeYours
- —
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