The marginal rate of transformation equals the absolute slope of a country's production possibilities schedule.

Question

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is the rate at which one good must be sacrificed in order to produce more of another good. It is equal to the absolute slope of a country's production possibilities schedule (PPS), which shows the various combinations of goods that a country can produce given its resources and technology. Therefore, the statement is true.

The Marginal Rate of Transformation Equals the Absolute Slope of a Country's