The slope of Production Possibility curve is represented by _____.

Marginal rate of Transformation

The correct answer is Option (2) → Marginal rate of Transformation

The Production Possibility Curve (PPC), also known as the Production Possibility Frontier (PPF), illustrates the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

The slope of the PPC at any given point indicates the rate at which production of one good must be decreased to increase the production of another good by one unit. This is what the Marginal Rate of Transformation (MRT) measures. The MRT is the opportunity cost of producing one more unit of a good.

For example, if a country can produce either cars or wheat, the slope of the PPC tells us how many units of wheat must be given up to produce one additional car. This trade-off is the core concept of opportunity cost. As resources are typically not perfectly adaptable to the production of both goods, the PPC is usually concave to the origin, signifying an increasing MRT (or increasing opportunity cost).