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Imagine a Simple Economy Composed of 2 Inputs: Z1 and

Question 79

Multiple Choice

Imagine a simple economy composed of 2 inputs: z1 and z2, and 2 goods, x1 and x2. The marginal rate of transformation between x1 and x2 can not be expressed as the:


A) Absolute value of the slope of the production possibilities frontier.
B) MP 2 /MP 1 where MP 2 is the marginal product of z2 in the production of x2 and MP 1 is the 2 2 2 2
Marginal product of z2 in the production of x1.
C) Marginal rate of technical substitution.
D) MP 2 /MP 1 , where MP 2 is the marginal product of z1, in the production of x2 and MP 1 is 1 1 1 1
The marginal product of z1 in the production of x1.

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