Question

True/False? Give valid reason in support of your answer.
1. The problem of choice is called the economic problem.
2. Study of an automobile industry is a subject matter of microeconomics,
3. Allocation of scarce resources and the distribution of the final goods and services are the central problems of an
economy.
4. The PP curve is a graphical medium of highlighting the central problem of 'How to produce'.
5. PPC is the locus of points that represent all the combinations of two goods which are obtainable and which are not obtainable.

Answer 1

Answer:

true

Explanation:

because because the resources are limited and and our needs and demand are unlimited so that is why the the problem of choice arises

Answer 2

1. True
2. True
3. True
4. False
5. False

1. True. The problem of choice is called the economic problem. It is so because resources are relatively scarce to the human wants so choice has to be made to determine the purpose for which the resources will be used.
2. True. Study of a specific industry or an individual unit is a subject matter of microeconomics.
3. True. Resources are relatively scarce to the human wants so choice has to be made to determine where the resource will be allocated and how they will be distributed among the people.
4. False.  The PP curve is a graphical medium of highlighting the central problem of 'What to produce'.
5. False. PPC is the locus of points that represent all the combinations of two goods which are obtainable with given resources .