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Central Problems & the PPC · Question 57 of 87

What is the marginal rate of transformation when the economy moves from C to D?

Question 57

MediumOriginal question

The table shows an economy's production possibilities.

CombinationWheat (tonnes)Cloth (lakh m)
A020
B118
C215
D311
E46

What is the marginal rate of transformation when the economy moves from C to D?

Options for question 57

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. From C to D wheat rises from 2 to 3 tonnes (ΔX = 1) and cloth falls from 15 to 11 (ΔY = 4).

  2. MRT = 4 ÷ 1 = 4 lakh m of cloth per tonne of wheat.

Worth noting

3 is the MRT from B to C; 11 is the cloth left at D, not the cloth given up.

Concept
MRT from a production schedule
Typical time
70 s
Your time
—
The rule this testsOpportunity cost and MRT
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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.