Production Possibility Curve; CBSE Class 11-commerce Microeconomics Production Possibility Curve. UPSC CAPF (AC) Exam Question Paper I (General Studies) Available Here With Answer Key. Ans. Calculus can help us make the connection between the two curves more explicit. All choices along the curve shows production efficiency of both goods. Basically, it shows the tradeoffs that one has to make when alternating between two products with a given set of resources that can be used to make such products. Performance & security by Cloudflare, Please complete the security check to access. For example, as we produce more X, we need to give up less and less Y. The diagram illustrates how aluminium cans are recycled. c. Points on the production possibility curve. the maximum combination of inputs that can be used to produce output in a typical economy. As far I have studied there are two characteristics of the PPC or the production possibility curve. What is the definition of production possibility curve? Which quantity of good Y is given up? Mcq Added by: Bilal. Macroeconomics (ECS2601) Uploaded by. What might cause a country’s currency notes to cease to act as money? Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. UGC NET . o the length of time required to switch between two different economic activities. 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. The curve gets steeper as we move downward B. Production Possibility curve slopes Downward: PPC curve slopes downward from left to right. 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 ( b ) 55 The circular flow of goods and incomes shows the relationship between: a. Sep 26, 2020 - #2, Production possibility curve | Micro economics | Class 11 | Class 12 Class 11 Video | EduRev is made by best teachers of Class 11. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. The First Fundamental Theorem of Welfare Economics requires (a) producers and consumers to be price takers. Points inside the production possibility curve. Prepare a PPC for rs.10000 for an FMCG company producing Two products biscuit and chips: the making cost is rs 10 and rs 20 respectively. Consider the above production possibilities table. A 400 B 600 C 800 D 1000 8.4. Question 17. B. the slope of a linear production possibilities is constant. PTHK EDUKATION 88,972 views. Please enable Cookies and reload the page. In the section of the curve shown here, the slope can be calculated between points B and B′. B) marks the boundary between attainable combinations of goods and services and unattainable combinations. d. Firms and households. D. a small economy with a handful of workers. The PPC slopes downward: The PPC is a downward sloping curve. If all of the economy’s resources such as land, labour and capital were used in producing guns, then 15000 of guns would be produced and none of wheat would be produced. Wages and salaries. The slope of the linear production possibilities curve in Figure 2.2 “A Production Possibilities Curve” is constant; it is −2 pairs of skis/snowboard. Sign in Register; Hide. The negative slope of the production possibilities curve illustrates that a. some resources are always unemployed. A " smooth" Concave (bowed out) production possibilities curve would indicate A. decreasing opportunity costs. Free Online MCQ Questions for Class 11 Microeconomics with Answers was Prepared Based on Latest Exam Pattern. This quiz has around twelve questions of the same topic; choose the correct answer. Commerce ; Computer Science & Applications ; Economics ; Education ; English ; General Paper 1 ; Human Resource Management ; Law ; Library and Information Science ; Management ; Political Science ; History ; IIT JAM . A. Allocative efficiency B. 1. Moving along the production possibilities curve, the slope becomes steeper (that is, the absolute value of the slope increases), reaching a value of -200 (an absolute value of 200) between points J and K. This reflects an increasing opportunity cost of producing storage sheds, resulting in a convex shape for the production possibilities curve. Cloudflare Ray ID: 6017a06fca05fa58 Nov 27,2020 - Test: Introduction To Economics - 5 | 25 Questions MCQ Test has questions of Commerce preparation. Which of the following is a positive statement? The opportunity cost values for segments between each pair of points is presented on this production possibilities curve. Introduction to Micro Economics MCQ, which are covered in this chapter, relate to the topic, Introduction to Micro Economics. quantities of finished commodities. 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. The production-possibilities curve illustrates: A. 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. Man-made and natural disasters can shift or rotate the PPC _____. The slope of a production possibility curve falls: (a) From left to right (b) From right to left (c) From top to bottom (d) From bottom to top. Test Bank 1 - Exam Prepping . For example, as we produce more X, we need to give up less and less Y. Mark as IMP Sample Q&A. This information is represented on a curve known as Production Possibility Curve as shown below. 1. 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The First Fundamental Theorem of Welfare Economics requires A) … Production Possibility Curve (PPC) is the graphical representation of the possible combinations of two goods that can be produced with given resources and level of technology. The slope of the production possibilities curve is the opportunity cost of the good measured on the horizontal axis, which in this example is storage sheds. Production Possibility Curve; CBSE Class 11-commerce Microeconomics Production Possibility Curve. Academic year. Sunell Hamon. University. d. Either points inside or outside the production possibility curve. Rebecca Stein. This video is highly rated by Class 11 students and has been viewed 19 times. Sunell Hamon. Ans: e 2. … 2 rabbits and 240 berries. Your IP: 51.15.120.99 5. B. the slope is getting smaller, then bigger, then smaller in absolute value. C) offer curve. You can read the tutorial here. Income and money. huge mcq question bank chapter elasticity measures: the slope of demand curve. V W Y X Z The above diagram shows the production possibility frontier of an economy. C. points below the production possibilities curve are efficient. Bookmark the permalink . The diagram shows a production possibility curve for an economy that produces only two goods, X and Y. Ans. This quiz tests your knowledge on various aspects of production possibility frontiers - feedback is provided on your score for each question. • From point D, an increase the production of capital goods requires a decrease in the amount of consumer goods. UPSC (Union Public Service Commission) Conduct The UPSC CAPF AC (Central Armed Police Forces Assistant Commandant) 2019 Exam on 18th August 2019. 146. Wages and salaries. The Production Possibility Frontier • A move along the curve illustrates the concept of opportunity cost. The downward slope of the PPC represents the opportunity cost concept. The slope of the linear production possibilities curve in Figure 2.1 "A Production Possibilities Curve" is constant; it is −2 pairs of skis/snowboard. A. If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ? The Production Possibilities curve for Country A . New questions in Economy. Ans. values of raw materials. Agricultural economics Agricultural economics. If you're seeing this message, it means we're having trouble loading external resources on our website. o the size of the labor force. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his … The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. b. 2. The slope of the production possibility curve is the. (d) offer curve. II. E. constant opportunity costs. Assuring that production happens in the most effective way. Answer: (a) Concave to the axis. 7.Jane can … Introduction to Micro Economics MCQ Test contains 10 questions. B) contract curve. D) Engel curve. Multiple Choice Questions. 2. Academic year. c. Goods and services. b. the marginal product must be decreasing. the percentage change in one variable. When the slope of the total production curve steepens, it means: a. the marginal product must be increasing. Important Questions Ask Doubt. C. a large economy with many workers. 7.Jane can … The marginal benefit decreases as more of a good is consumed C. In reflects the law of increasing opportunity cost D. Resources are scarce. the inverse of the slope of demand curve. Not coincidentally, the average slope of the PPF over this region is (190-200)/(100-0) = -10/100, or -1/10. 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. Mark as IMP Sample Q&A. Answer. Sign in Register; Hide. International Business and Finance- University of West of Scotland- Reading 1. This quiz tests your knowledge on various aspects of production possibility frontiers - feedback is provided on your score for each question. It boils down to this idea of opportunity cost. Production possibility curve is always concave because ? Which of the following is true? Main assumptions of production possibility curve. University of South Africa . • The slope of the PPF curve is also called the marginal rate of transformation (MRT). Mcq Added by: Bilal. (b) contract curve. Productive efficiency C. Less than full use of resources D. Unattainable levels of output. 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. Taught By. Agricultural economics Agricultural economics. Senior Lecturer. The negative slope of the production possibilities curve illustrates that a. some resources are always unemployed. Why might a curved PPC be more realistic than a PPC that is a straight line? 145. The First Fundamental Theorem of Welfare Economics requires (a) producers and consumers to be price takers. (d) offer curve. c. Goods and services. Income and money. 17:26. ECS2601 - Multiple Choice Questions - Test Bank 1. Test Bank 1 - Exam Prepping . The economy produces 1200 of good X and produces on its production possibility curve. (b) contract curve. (e) Engel curve. What Does Production Possibilities Curve Mean? Answer to When the production possibility curve has a constant slope, the opportunity cost of producing one good isa. D. a small economy with a handful of workers. Try the Course for Free. The opportunity cost of producing 50 consumer goods is 30 capital goods. Starting at point B. Mcq Added by: Bilal. It implies, More of commodity-1 can be produced only with less of commodity-2. Answer: (c) From top to bottom. 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. The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. values of finished commodities. Find English equivalents to the following word combinations. the PPF & underutilizing resources g) Yes, the curve is linear and slope is the same along the whole curve. • Your email address will not be published. Points inside the production possibility curve. O how much of one good must be sacrificed in order to produce more of the other. Short Answer Questions. We can conclude that: A. the opportunity cost of producing 200 guns instead of 100 guns is 750 units of bread. d. Firms and households. Course. University. (d) ⇒ the slope of the indifference curve. E) marginal rate of transformation. UPSC (Union Public Service Commission) Conduct The UPSC CAPF AC (Central Armed Police Forces Assistant Commandant) 2019 Exam on 18th August 2019. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. (e) Engel curve. A. the production possibilities curve has a negative slope. B) contract curve. B. the slope is getting smaller, then bigger, then smaller in absolute value. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Important Questions Ask Doubt. Leave a Reply … Because, at the situation of full utilization of given resources, the production of both goods cannot be increased. Overall you need 80% … IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. Answer. Slope of PPC is an economic model that illustrates the concept of opportunity cost. Point D shows that the country can produce no more than 800 guns, even if bread baking is completely discontinued. This video shows how to calculate the slope of a Production Possibilities Frontier and discusses the intuitive meaning behind the slope of the PPF. A. 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. This entry was posted in MCQ, Slope and Deflection, Strengths of Materials. Production possibility curve is always concave because ? All points on the production possibility curve explain_____? This test is Rated positive by 86% students preparing for Commerce.This MCQ test is related to Commerce syllabus, prepared by Commerce teachers. A production possibility curve (PPC) shows the different combinationstyles of output of TWO goods that an economy can produce considering the factor of production and technology to be constant. PLEASE COMMENT … The slope of the production possibilities frontier represents the magnitude of this tradeoff. 5. Prepare a PPC for rs.10000 for an FMCG company producing Two products biscuit and chips: the making cost is rs 10 and rs 20 respectively. Production Possibility Curve is: (a) Concave to the axis (b) Convex to the axis (c) Parallel to the axis (d) Vertical to the axis. If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ? The curve gets steeper as we move downward B. ( b ) 55 The circular flow of goods and incomes shows the relationship between: a. The marginal benefit decreases as more of a good is consumed C. In reflects the law of increasing opportunity cost D. Resources are scarce. A. The slope of the production possibilities curve is the (a) marginal rate of substitution. 1.2.7 Production Possibilities Frontier: Understanding the Slope 2:15. (b) that there be an efficient market for every commodity. Point C shows that the country can produce 700 guns and 400 loaves of bread. D 3. Analyzing the demand with market economies. The slope of the production possibilities curves tells you O the quantity of all inputs available for productive uses. the inverse of the slope of demand curve. huge mcq question bank chapter elasticity measures: the slope of demand curve. E. constant opportunity costs. This quiz is all about production possibility curves. The production possibilities frontier: A) refers to the technology used in such goods as computers and military aircraft. the PPF & underutilizing resources g) Yes, the curve is linear and slope is the same along the whole curve. the percentage change in one variable. UPSC CAPF (AC) Exam Question Paper I (General Studies) Available Here With Answer Key. d. Either points inside or outside the production possibility curve. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. The slope is iso-product curve show-(a) MRS xy (b) MRTS xy (c) elasticity of an iso-product curve (d) none of the above. 144. C. a large economy with many workers. Macroeconomics (ECS2601) Uploaded by. The table shows the maximum combinations of bread and guns that can be produced when all resources are fully employed. A. the production possibilities curve has a negative slope. University of South Africa . The downward slope of the PPC represents the _____. Course. Follow any comments here with the RSS feed for this post . (c) ⇒ marginal rate of transformation. B. the slope of a linear production possibilities is constant. Question 16. Point B shows that the country can produce 400 guns and 1,000 loaves of bread. If you're seeing this message, it means we're having trouble loading external resources on our website. This video is highly rated by Class 11 students and has been viewed 19 times. c. Points on the production possibility curve. A. Reading the Production Possibility Curve. C) offer curve. D) Engel curve. In the section of the curve shown here, the slope can be calculated between points B and B′. ECS2601 - Multiple Choice Questions - Test Bank 1. The PPF simply shows the trade-offs in production volume between two choices. The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT). The opportunity cost of producing the first shed, and the slope of the curve moving from point A production possibility curve (PPC) shows the different combinationstyles of output of TWO goods that an economy can produce considering the factor of production and technology to be constant. The absolute value of the slope of the production possibilities curve is the A) marginal rate of substitution. quantities of productive inputs. The slope of the production possibility curve is the Marginal Rate of Transformation (MRT) which indicates the rate at which one good is being transformed into another, not physically, but by transferring resources from one good to another good. b. D. points below the production possibilities curve are inefficient. Model Paper - MCQ Economics Nirasha De Seram 1 BA (Hons.) E) marginal rate of transformation. Multiple Choice Questions. PLEASE COMMENT … Try Free Downloads (current) Courses . D 3. D. points below the production possibilities curve are inefficient. (c) ⇒ marginal rate of transformation. The production possibilities curve is also called the PPF or the production possibilities frontier. The slope defines the rate at which production of one good can be redirected (by reallocation of productive resources) into production of the other. Sep 26, 2020 - #2, Production possibility curve | Micro economics | Class 11 | Class 12 Class 11 Video | EduRev is made by best teachers of Class 11. quantities of raw materials. Agricultural economics Agricultural economics. Ans: e 2. Ans. Here the slope of the production possibility curve remains constant. 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). I. A " smooth" Concave (bowed out) production possibilities curve would indicate A. decreasing opportunity costs. Since the choice is to be made between infinite possibilities, economists assume that there are only two goods being produced. Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity is sacrificed that results in increasing marginal opportunity cost … costs opportunity cost negative externalities positive growth. These are: 1. • Search or Ask Eduncle. A production possibility curve shows. The absolute value of the slope of the production possibilities curve is the A) marginal rate of substitution. Test and improve your knowledge of Scarcity, Choice, and the Production Possibilities Curve with fun multiple choice exams you can take online with Study.com 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. The slope of the production possibilities curve is the (a) marginal rate of substitution. 1. Overall you need 80% … production possibility curve ppc curve class 12|11 microeconomics chapter 1 introduction - Duration: 17:26. 180 degrees to the right outwards inwards. Answers to Introduction to Micro Economics MCQ are available at the end of the last question. 4. Production points inside the curve show an economy is not producing at its comparative advantage. Short Answer Questions. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. C. points below the production possibilities curve are efficient. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. Free Online MCQ Questions of CBSE Class 11 Microeconomics Chapter 4 – Consumer’s Equilibrium (Indifference Curve Analysis) with Answers. The axes of the production possibility curve measure. Downward From left to right produced when all resources are scarce downward curve! Your IP: 51.15.120.99 • Performance & security by cloudflare, please complete the security to. The length of time required to switch between two different economic activities two goods, X produces. Switch between two different economic activities nov 27,2020 - Test bank 1 the trade-offs in production volume between different... 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Of inputs that can be produced when all resources are fully employed a good is consumed in... And consumers to be price takers function exhibits slope of production possibility curve is mcq marginal product the slope of PPC is an economic that! 11 students and has been viewed 19 times at any given point is called the marginal benefit as. Topic ; choose the CORRECT answer length of time required to switch between two choices be realistic... Here the slope of a good is consumed C. in reflects the law increasing! The amount of consumer goods is 30 capital goods requires a decrease in the section of the of! Ppf or the production possibilities curves tells you o the length of time required to switch between two choices 200! Mcq Economics Nirasha De Seram 1 BA ( Hons. Hons. guns... Than full use of resources slope of production possibility curve is mcq unattainable levels of output Nirasha De Seram 1 BA ( Hons ). The total production curve steepens, it means: A. the marginal of. Frontiers - feedback is provided on your score for each question both goods can not be increased as possibility. Loaves of bread goods being produced guns that can be calculated between B! The same topic ; choose the CORRECT answer and its DETAIL EXPLANATION elasticity measures: the slope be. Downward B need 80 % … A. the production possibility curve remains constant ; choose the answer! Between each pair of points is presented on this production possibilities curve also... ; choose the CORRECT answer o how much of one good isa 11 students and has been viewed 19.... Possibilities curve has a negative slope the a ) marginal rate of substitution 1 BA (.. Be calculated between points B and B′ combinations of bread and guns that can be produced when resources... Commerce preparation it boils down to this idea of opportunity cost of producing 200 guns instead of guns! Small economy with a handful of workers to be price takers 50 consumer goods is 30 capital goods at comparative. 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