Assertion (A): Moving from a point inside the PPC to a point on it has no opportunity cost.
Reason (R): The MRT is constant along every PPC.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A is true: idle resources are put to work, and nothing is given up.
R is false: the MRT is constant only on a straight-line PPC; on the usual concave PPC it rises.

Concept: Idle resources and MRT
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsOpportunity cost and MRT

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Ten questions from Central Problems & the PPC, at your own pace.

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Ten questions from Central Problems & the PPC, at your own pace.

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Assertion (A): Moving from a point inside the PPC to a point on it has no opportunity cost.Reason (R): The MRT is constant along every PPC.

Explanation

Assertion (A): Moving from a point inside the PPC to a point on it has no opportunity cost.
Reason (R): The MRT is constant along every PPC.