Question

1)In which situation PPF shifts towards right?
(a) Increase in foreign capital
(b) Resources are reduced
(c) Fully efficient use of resources
(d) Increase in employment
2)When can a Production Possibility Frontier be a straight line?
(a) Decrease in production of both goods
(b) More of both goods can be produced
(c) All resources are equally efficient in production of both goods
(d) All resources are not equally efficient in production of both goods.
3)Which of the following is an assumption of PPF?
(a) Available Resources are fully and efficiently utilized
(b) Technology remain stable
(c) Resources are not equally efficient in production of all goods
(d) All of the above
4)Which of these statement is correct about Opportunity cost?
(a) Opportunity cost is always higher than the given price.
(b) Opportunity cost is always less than the given price.
(c) Opportunity cost is always calculated in money.
(d) Opportunity cost can be less than, more than or equal to given price,​

Answer 1

Explanation:

(a) Available Resources are fully and efficiently utilzed

(b) Technology remain stable

() Resources are not equally efficient in roduction of all goods

(d) All of the above

4)Which of these statement is correct about Opportunity costgher than the given price.

(b) Opportunity cost is always less than the given price.

(c) Opportunity cost is always calculated in money.

(d) Opportunity cost can be less than, more than or equal to given price