The so-called ______ shows the amount of one product that a nation must sacrifice in order to obtain one more unit of the second product.
A) autarkic cost
B) marginal rate of transformation
C) technology cost
D) accounting cost

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is the rate at which one good must be sacrificed in order to produce a single additional unit of another good. The production possibilities frontier (PPF) shows the different combinations of two goods that can be produced with a fixed amount of resources, and the slope of the PPF represents the MRT. Therefore, B is the best choice.

The So-Called ______ Shows the Amount of One Product That