Point A on a production possibilities curve,where bicycles are on the vertical axis and tricycles on the horizontal axis,represents a combination of 10 bicycles and 4 tricycles,and point B represents 6 bicycles and 6 tricycles.The absolute value of the slope of the production possibilities curve between points A and B equals
A) 2.
B) 4.
C) ½.
D) ¼.
E) 6.

Question

Quizplus · Accepted Answer

The slope of the production possibilities curve is calculated as the change in the quantity of bicycles divided by the change in the quantity of tricycles. Between points A and B, the change in bicycles is 10 - 6 = 4, and the change in tricycles is 4 - 6 = -2. The absolute value of the slope is |4 / -2| = 2.

Point a on a Production Possibilities Curve,where Bicycles Are on the Vertical