The slope of the production possibilities frontier is the marginal rate of

Question

Quizplus · Accepted Answer

The slope of the production possibilities frontier (PPF) measures the rate at which one good can be transformed into another. This is known as the marginal rate of transformation (MRT). Therefore, the best choice is B) transformation. A) technical substitution refers to the rate at which one input can be substituted for another while keeping output constant, and C) substitution does not accurately describe the meaning of the slope of the PPF.

The Slope of the Production Possibilities Frontier Is the Marginal