Q.1
a) Explain the following using production possibility curve :
उत्पादन संभावना वक्र का उपयोग करते हुए निम्नलिखित का व्याख्या करें:
(i) Scarcity of resources and choice.
संसाधनों का सीमितता तथा चयन
Opportunity cost.
अवसर लागत
b) Explain the Shape of Indifference Curve for following cases
लिवित किनिगों के लिा तटाता तक के आकार का तितेचन करें
Answers
In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases.
Scarcity refers to the finite nature and availability of resources while choice refers to people's decisions about sharing and using those resources. The problem of scarcity and choice lies at the very heart of economics, which is the study of how individuals and society choose to allocate scarce resources.
Definition: An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. ... Description: Graphically, the indifference curve is drawn as a downward sloping convex to the origin. The graph shows a combination of two goods that the consumer consumes.