Advertisements
Advertisements
प्रश्न
Giving reason comment on the shape of production possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 8 |
| 1 | 6 |
| 2 | 4 |
| 3 | 2 |
| 4 | 0 |
उत्तर
Marginal opportunity cost:
| Good X (units) | Good Y (units) | MOC = `"ΔY"/"ΔX"` |
| 0 | 8 | - |
| 1 | 6 | 2/1 = 2 |
| 2 | 4 | 2/1 = 2 |
| 3 | 2 | 2/1 = 2 |
| 4 | 0 | 2/1 = 2 |
The above schedule clearly states that the production of Good-X increases from Unit 1 to Unit 2, and correspondingly, the units of Good-Y forgone is 2. With each additional unit of production of Good-X, the amount of Good-Y to be forgone is constant (2). So, because of constant opportunity cost, the production possibility curve (PPC) is a downward sloping straight line.
APPEARS IN
संबंधित प्रश्न
Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 20 |
| 1 | 18 |
| 2 | 14 |
| 3 | 8 |
| 4 | 0 |
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 4 |
| 1 | 3 |
| 2 | 2 |
| 3 | 1 |
| 4 | 0 |
Answer the following question.
Explain the meaning of opportunity cost with the help of a production possibility schedule.
Define flow variable.
Define flow variable.
What is a production possibility frontier?
Choose the correct alternative from given options:
In the given figure, the movement on the production possibility curve from point A to point B shows _____________.
Choose the correct alternative from given options:
Shift from Point A on Production Possibility Curve X1Y1 to point B on X2Y2 in the given figure indicates:
Fill up the blank.
A Production Possibility Curve (PPC) would be convex to the origin if the Marginal Rate of Transformation (MRT) is ___________.
Answer the following question.
Why is a Production Possibility Curve concave to the origin? Explain.
______ are economic units that carry out the production.
Production possibility curve slopes downwards from ______ to ______.
Which of the following statement is true:
______ shows the functional relationship between output and cost of production.
Which of the following statement is false?
