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Question
Which of the following statement is false?
Options
PPC slopes downwards.
PPC is concave.
PPC slopes upwards.
None of these
MCQ
Solution
PPC slopes upwards.
Explanation:
Properties of PPC:
PPC has two basic characteristics or properties:
PPC slopes downwards: It slopes downward from left to right because producing more of one good requires diverting resources from the production of another.
PPC is concave shaped: PPC has a concave shape due to increasing MRT, which means that more and more units of one commodity are sacrificed to gain one unit of another.
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Concepts of Production Possibility Frontier
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