The Rate of Which One Input Can Be Traded for Another

question 11

Multiple Choice

The rate of which one input can be traded for another at a point along the production possibilities frontier is called the

• A)marginal rate of technical transformation
• B)marginal rate of technical substitution
• C)marginal rate of substitution
• D)marginal reduction rate

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Definitions:

Gasoline Tax

A tax imposed by governments on the sale of gasoline, typically used to fund transportation-related projects.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, resulting in taxpayers paying the same percentage of their income regardless of the income level.

Higher-income Persons

Individuals or households that have an income significantly above the average for a certain society or area.

Taxes

Mandatory financial charges imposed by a government on individuals, businesses, and transactions to fund public expenditures.