Question 62
MediumOriginal questionThe table shows an economy's production possibilities.
| Combination | Good X | Good Y |
|---|---|---|
| P | 0 | 30 |
| Q | 5 | 20 |
| R | 10 | 10 |
| S | 15 | 0 |
What is the MRT of X into Y?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Each step adds 5 units of X and gives up 10 units of Y.
MRT = 10 ÷ 5 = 2 units of Y per unit of X, the same at every step, so the PPC is a straight line.
Worth noting
10 is the Y given up per step of 5 X, not per unit of X.
- Concept
- Constant MRT from a table
- Typical timeTypical
- 70 s
- Your timeYours
- —
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