The value of the slope of a society's production possibility frontier is called its
A) marginal rate of substitution.
B) inflation rate.
C) unemployment rate.
D) marginal rate of transformation.

Question

Quizplus · Accepted Answer

The slope of a society's production possibility frontier (PPF) is known as the marginal rate of transformation (MRT). It represents the rate at which one good can be transformed into another by reallocating resources, reflecting the opportunity cost of producing one more unit of a good.

The Value of the Slope of a Society's Production Possibility