The Marginal Rate of Transformation Is

question 7

Multiple Choice

The marginal rate of transformation is

• A) the rate at which hours worked can be converted into an economy's capital stock.
• B) - (slope of the PPF).
• C) equivalent to the marginal rates of substitution.
• D) is derived from the marginal product of labour.
• E) is equal to the wage rate ? TFP.

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Definitions:

Required Return

This is the minimum rate of return on an investment that investors expect or require to make it worthwhile.

Accounts Payable

The amount of money a company owes its suppliers for goods and services purchased on credit.

Accounts Receivable

Financial dues from customers to a firm for goods or services that have been dispensed or availed but remain unpaid.

Inventory

An accounting term referring to goods and materials held by a business for the purpose of sale or production.