Advertisements
Advertisements
प्रश्न
Answer the following question.
Why is a Production Possibility Curve concave to the origin? Explain.
उत्तर
PPC is concave to origin because of the increasing opportunity cost i.e. in accordance with the law of increasing opportunity cost. This suggests that as the production increases, to produce each additional unit of one good, more and more units of other good needs to be sacrificed. In other words, the opportunity cost increases.
APPEARS IN
संबंधित प्रश्न
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using production possibilities curve.
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 |
A large number of technical training institutions have been started by the government. State its economic value in the context of production possibilities frontier.
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 |
Define Production Possibilities Curve. Explain why it is downward sloping from left to right.
Define flow variable.
Define flow variable.
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 ___________.
______ are economic units that carry out the production.
Production possibility curve slopes downwards from ______ to ______.
Which of the following is the result of increase in price of factors of production?
Which of the following statement is true:
______ shows the functional relationship between output and cost of production.
Which of the following statement is false?
