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​

Answer 1

The main problems, are what to produce, how to produce and for whom to produce.Scarcity means limited resources. The basic economic problem is that we live in a world of scarce resources, but we have unlimited wants. Scarcity forces us to make choices to satisfy our wants.

Answer 2

Answer:

1 true

2true

3 true

4false

5false