Question

Q1. State with reasons whether the following statements are True or False.
i) Scarcity of Resources is the only cause responsible for all Economic Problems.
ii) Under the Economic Problem of “What to Produce” we decide on the type of goods to be produced for eg whether the economy should produce more of capital goods or consumer goods.
iii) For an economy like India “Capital Intensive techniques” of production are best suited for undertaking production of all type of goods.
iv) Whatever holds true at a Micro Economic level also holds true at a Macro Economic level. v) Most of the economies in the world lie on their Production Possibility Frontier.
vi) Massive Unemployment in the Economy will shift the PPF to the left.
vii) Demand for luxury goods is relatively more elastic as compared with necessity goods. viii) Inelastic demand implies no change in demand even with change in price.
ix) Commodities having elastic demand tend to have a flatter demand curve as compared with commodities having inelastic demand.
x) Slope of the demand curve indicates the ratio between change in quantity demanded due to change in price.



Plz give correct answers!!

Answer 1

Answer:

1. False
2. False
3. True
4. True
5. False
6. True
7. False
8. False
9. True
10. True