What happens to the MRT as more guns are…

What happens to the MRT as more guns are produced, and what does it tell you?

Question 70

HardOriginal question

An economy can produce these combinations of guns and butter.

Guns	0	1	2	3	4	5
Butter (tonnes)	50	48	44	38	30	20

What happens to the MRT as more guns are produced, and what does it tell you?

It rises (2, 4, 6, 8, 10), so the PPC is concave to the originCorrect answerYour answerIt falls, so the PPC is convex to the originCorrect answerYour answerIt stays at 2, so the PPC is a straight lineCorrect answerYour answerIt rises, so the PPC is a straight lineCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Butter given up per extra gun: 2, 4, 6, 8, 10 tonnes.
An MRT that rises along the curve makes the PPC concave to the origin.

Concept: Increasing MRT
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsOpportunity cost and MRT

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.

What happens to the MRT as more guns are produced, and what does it tell you?

Question 70

Explanation