Answers to Introduction to Micro Economics MCQ are available at the end of the last question. B) contract curve. Why might a curved PPC be more realistic than a PPC that is a straight line? University. Productive efficiency C. Less than full use of resources D. Unattainable levels of output. For example, as we produce more X, we need to give up less and less Y. Try Free Downloads (current) Courses . International Business and Finance- University of West of Scotland- Reading 1. Main assumptions of production possibility curve. the PPF & underutilizing resources g) Yes, the curve is linear and slope is the same along the whole curve. The PPC slopes downward: The PPC is a downward sloping curve. 7.Jane can … O how much of one good must be sacrificed in order to produce more of the other. Model Paper - MCQ Economics Nirasha De Seram 1 BA (Hons.) Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. huge mcq question bank chapter elasticity measures: the slope of demand curve. An isoquant is-(a) downward sloping and concave to origin (b) downward sloping and convex to origin (c) downward sloping straight line curve (d) horizontal straight line curve. c. Points on the production possibility curve. costs opportunity cost negative externalities positive growth. B. the slope is getting smaller, then bigger, then smaller in absolute value. D. a small economy with a handful of workers. A " smooth" Concave (bowed out) production possibilities curve would indicate A. decreasing opportunity costs. c. Points on the production possibility curve. Income and money. PLEASE COMMENT … Mark as IMP Sample Q&A. Answer. The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. ( b ) 55 The circular flow of goods and incomes shows the relationship between: a. Which of the following is a positive statement? C. a large economy with many workers. the maximum combination of inputs that can be used to produce output in a typical economy. Mcq Added by: Bilal. D. a small economy with a handful of workers. Follow any comments here with the RSS feed for this post . Overall you need 80% … 1. This information is represented on a curve known as Production Possibility Curve as shown below. The curve gets steeper as we move downward B. Analyzing the demand with market economies. Production possibility curve is always concave because ? Test Bank 1 - Exam Prepping . The absolute value of the slope of the production possibilities curve is the A) marginal rate of substitution. (d) offer curve. Answer: (a) Concave to the axis. E) marginal rate of transformation. (b) contract curve. b. Sunell Hamon. For example, in moving from the top left point to the next point down the curve, the economy has to give up production of 10 guns if it wants to produce 100 more pounds of butter. (c) ⇒ marginal rate of transformation. ECS2601 - Multiple Choice Questions - Test Bank 1. Senior Lecturer. This test is Rated positive by 86% students preparing for Commerce.This MCQ test is related to Commerce syllabus, prepared by Commerce teachers. Sign in Register; Hide. D 3. B. the slope of a linear production possibilities is constant. This video shows how to calculate the slope of a Production Possibilities Frontier and discusses the intuitive meaning behind the slope of the PPF. ECS2601 - Multiple Choice Questions - Test Bank 1. Rebecca Stein. Question 16. production possibility curve ppc curve class 12|11 microeconomics chapter 1 introduction - Duration: 17:26. In the section of the curve shown here, the slope can be calculated between points B and B′. A. the production possibilities curve has a negative slope. The First Fundamental Theorem of Welfare Economics requires A) … Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. C. points below the production possibilities curve are efficient. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. E. constant opportunity costs. Thus, the basic economic problem is that, in view of the scarcity of resources, at what point of the production possibility curve, the economy should produce so as to maximise social welfare. UPSC CAPF (AC) Exam Question Paper I (General Studies) Available Here With Answer Key. c. Goods and services. The slope of the production possibilities curve is the (a) marginal rate of substitution. Leave a Reply … The production possibilities frontier: A) refers to the technology used in such goods as computers and military aircraft. A 400 B 600 C 800 D 1000 8.4. Multiple Choice Questions. Definition: The Production Possibilities Curve, also known as the production possibilities frontier, is a graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently. Transcript [MUSIC] Why is it the case that in my general example of a production possibility frontier, I assume that it is a curve, but in this numerical example, I got a straight line. This quiz is all about production possibility curves. (b) that there be an efficient market for every commodity. UGC NET . Point B shows that the country can produce 400 guns and 1,000 loaves of bread. In the section of the curve shown here, the slope can be calculated between points B and B′. Slope of production possibility curve is: a straight line; convex to the point of origin; concave to the point of origin; none of these; When an economy is operating on the PPC, it indicates: potential output > actual output; potential output= actual output Ans. The First Fundamental Theorem of Welfare Economics requires A) … Log in, Concise Mathematics Class 10 ICSE Solutions 2018, Click to share on WhatsApp (Opens in new window), Click to share on Telegram (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pinterest (Opens in new window). Assuring that production happens in the most effective way. Question 17. The opportunity cost of producing 50 consumer goods is 30 capital goods. Technology used in such goods as computers and military aircraft that the country produce. 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