When some resources are shifted from Use 1 to Use 2 (given technology), the Marginal Rate of Transformation will.........

increase

The correct answer is Option (1) → increase

The Marginal Rate of Transformation (MRT) refers to the amount of one good that must be sacrificed to produce one additional unit of another good, given the available resources and technology. It is essentially the slope of the Production Possibility Frontier (PPF). The PPF is typically concave to the origin (bowed outwards). This shape reflects the Law of Increasing Opportunity Cost.

Resources are not equally efficient in producing all goods. Some resources are better suited for producing one good (e.g., land for agriculture) than another (e.g., factories for industrial goods). When you initially shift resources from producing one good (Use 1) to another (Use 2), you first move the resources that are least productive in Use 1 but most productive in Use 2. This means the sacrifice of Use 1 to gain Use 2 is initially small.As you continue to shift more resources from Use 1 to Use 2, you start moving resources that are progressively more efficient in Use 1 and less efficient in Use 2. To get additional units of Use 2, you have to sacrifice increasingly larger amounts of Use 1. This increasing sacrifice means that the slope of the PPF (the MRT) becomes steeper as you move along the curve, which implies that the Marginal Rate of Transformation increases.