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Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.- a)Rs. 3,75,000
- b)Rs. 2,75,000
- c)Rs. 3,50,000
- d)Rs. 2,50,000
Correct answer is 'A'. Can you explain this answer?
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.
a)
Rs. 3,75,000
b)
Rs. 2,75,000
c)
Rs. 3,50,000
d)
Rs. 2,50,000
|
Rithika Khanna answered |
Purchase of investment during the year Rs.3,75,000 i.e. 5,00,000 + 1,37,500 – 2,50,000 – 12,500 = 3,75,000
What is the other name for opportunity cost in economics- a)Total Cost
- b)Marginal cost
- c)Economic cost
- d)Economic problem
Correct answer is option 'C'. Can you explain this answer?
What is the other name for opportunity cost in economics
a)
Total Cost
b)
Marginal cost
c)
Economic cost
d)
Economic problem
|
Aryan Khanna answered |
Economic cost is the combination of losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another.
An economy always produces on, but not inside a PPC.
- a)True
- b)False
- c)Occasionally
- d)Can’t say
Correct answer is option 'B'. Can you explain this answer?
An economy always produces on, but not inside a PPC.
a)
True
b)
False
c)
Occasionally
d)
Can’t say
|
|
Alok Mehta answered |
An economy does not always on a ppc . when an economy produces on ppc it mean there is no unemployment and all the resources are fully and being used efficiently but practically these 2 conditions may not apply . if there is unemployment or inefficent use of resources an ecnmy will opreate inside the ppc therefor the above given statement is refuted .
A tutor earns Rs. 1000 per hour teaching economics. If he joins a school, he would earn on an average Rs. 300 per hour. What is the opportunity cost of teaching in school?- a) Rs. 300
- b)Rs. 700
- c)Rs. 1000
- d)Rs. 1300
Correct answer is option 'A'. Can you explain this answer?
A tutor earns Rs. 1000 per hour teaching economics. If he joins a school, he would earn on an average Rs. 300 per hour. What is the opportunity cost of teaching in school?
a)
Rs. 300
b)
Rs. 700
c)
Rs. 1000
d)
Rs. 1300
|
Kiran Mehta answered |
Opportunity cost is the profit lost when one alternative is selected over another. The concept is useful simply as a reminder to examine all reasonable alternatives before making a decision.
The basic economic activities put in order are- a)Consumption, exchange and production
- b) Production, Exchange and consumption
- c) Production, consumption and exchange
- d) Exchange, production and consumption
Correct answer is option 'B'. Can you explain this answer?
The basic economic activities put in order are
a)
Consumption, exchange and production
b)
Production, Exchange and consumption
c)
Production, consumption and exchange
d)
Exchange, production and consumption
|
|
Aryan Khanna answered |
Production, consumption and capital formation are called the basic economic activities of an economy. Scarce resources are used in the production of goods and services with the objective of satisfying our needs and wants.
The subject of a Microeconomic study is- a) Individual economy
- b) Mixed economies
- c) Individual economic unit
- d) Planned economies
Correct answer is option 'C'. Can you explain this answer?
The subject of a Microeconomic study is
a)
Individual economy
b)
Mixed economies
c)
Individual economic unit
d)
Planned economies
|
Arjun Saini answered |
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms
A PPC can shift its position if and only if- a) If technology improves
- b) If resources remain constant
- c) None of these
- d) If technology remains constant
Correct answer is option 'A'. Can you explain this answer?
A PPC can shift its position if and only if
a)
If technology improves
b)
If resources remain constant
c)
None of these
d)
If technology remains constant
|
Rhea Choudhary answered |
The most common reason a PPF would shift is because of a change in technology, or because of economic growth.
All unattainable combinations will lie- a)Under the PPC only
- b)On and under the PPC
- c)On the PPC only
- d) Above the PPC only
Correct answer is option 'D'. Can you explain this answer?
All unattainable combinations will lie
a)
Under the PPC only
b)
On and under the PPC
c)
On the PPC only
d)
Above the PPC only
|
Muskaan Mishra answered |
Points outside the PPF are unattainable production points given current resources and technologies. It is impossible for an economy to produce outside its PPF. The PPF can change, however, with changes in resources or technology.
Microeconomics studies the behaviour of - a)Individual economic unit
- b) Mixed economies
- c) Individual economy
- d)Planned economies
Correct answer is 'A'. Can you explain this answer?
Microeconomics studies the behaviour of
a)
Individual economic unit
b)
Mixed economies
c)
Individual economy
d)
Planned economies
|
|
Arjun Singhania answered |
I. The term Micro Economics is derived from the Greek work “Mikros” which means “Small”. Micro economics gives a detailed analysis of one part of the economy or society. It studies the behaviour of individual units of the economy, such as households, firms, industries and markets.ii. Micro economics is concerned with the study of behaviour of individual element(s) of an economy, whereas, macro economies concerned with the study of behaviours of an economy as whole.iii. Micro-economics gives a microscopic picture of the economy. The activities of numerous economic units and their inter-relationship are studied and analysed minutely through this method.
The positive economic analysis deals with the variables- a) As they should be
- b) As they are
- c) As they are expected
- d) As they seem to be
Correct answer is option 'B'. Can you explain this answer?
The positive economic analysis deals with the variables
a)
As they should be
b)
As they are
c)
As they are expected
d)
As they seem to be
|
|
Kiran Mehta answered |
Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories.
Positive economics states- a)Central problems of an economy be
- b)What will
- c)What is
- d)What is supposed to be
Correct answer is option 'B'. Can you explain this answer?
Positive economics states
a)
Central problems of an economy be
b)
What will
c)
What is
d)
What is supposed to be
|
|
Alok Mehta answered |
Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic statements must be able to be tested and proved or disproved. Normative economic statements are opinion based, so they cannot be proved or disproved.
Which central problem explains ‘who gets more and who gets less’? - a)Scarcity of resources
- b) What to produce
- c)For whom to produce
- d)How to produce
Correct answer is option 'C'. Can you explain this answer?
Which central problem explains ‘who gets more and who gets less’?
a)
Scarcity of resources
b)
What to produce
c)
For whom to produce
d)
How to produce
|
Rahul Chaudhary answered |
This problem refers to selection of the category of people who will ultimately consume the goods, i.e. whether to produce goods for more poor and less rich or more rich and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people. Thus, a problem of choice arises.
Does production takes place only on PPC?
- a) No
- b)Sometimes
- c)Yes
- d)Can’t say
Correct answer is option 'B'. Can you explain this answer?
Does production takes place only on PPC?
a)
No
b)
Sometimes
c)
Yes
d)
Can’t say
|
Subham Roy answered |
When all resources are employed on ideal situation, production can take place on PPC
Which of the following is the correct expression of Marginal Rate of Transformation?- a) 2Y for 1X
- b) 1:2
- c) 2:1
- d) 2Y
Correct answer is option 'B'. Can you explain this answer?
Which of the following is the correct expression of Marginal Rate of Transformation?
a)
2Y for 1X
b)
1:2
c)
2:1
d)
2Y
|
Srishti Roy answered |
The Marginal Rate of Transformation (MRT) is defined as the rate at which one good is exchanged for another good, while keeping the level of satisfaction of the consumer constant. It is also known as the slope of the production possibility curve.
The correct expression of Marginal Rate of Transformation is 1:2.
Explanation:
MRT is expressed as the ratio of the amount of one good that must be given up to produce an additional unit of another good. In this case, the ratio is 1:2, which means that to produce one additional unit of good X, 2 units of good Y must be given up. This implies that the opportunity cost of producing one unit of good X is 2 units of good Y.
Therefore, the correct expression for MRT is option B, which is 1:2.
The correct expression of Marginal Rate of Transformation is 1:2.
Explanation:
MRT is expressed as the ratio of the amount of one good that must be given up to produce an additional unit of another good. In this case, the ratio is 1:2, which means that to produce one additional unit of good X, 2 units of good Y must be given up. This implies that the opportunity cost of producing one unit of good X is 2 units of good Y.
Therefore, the correct expression for MRT is option B, which is 1:2.
The basic factors of production are land, labour, capital and______ - a)Resources
- b)Machinery
- c)Investment
- d)Entrepreneurship
Correct answer is option 'D'. Can you explain this answer?
The basic factors of production are land, labour, capital and______
a)
Resources
b)
Machinery
c)
Investment
d)
Entrepreneurship
|
Aditya Kumar The Best answered |
Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. This include land, labour, capital and entrepreneurship.
One of the characteristics of economic resource is scarcity. Which is the other?- a)They have alternate uses
- b)They are available in limited quantity
- c)They are in abundance
- d)They are not marketable
Correct answer is option 'A'. Can you explain this answer?
One of the characteristics of economic resource is scarcity. Which is the other?
a)
They have alternate uses
b)
They are available in limited quantity
c)
They are in abundance
d)
They are not marketable
|
Priyanka Ravichandran answered |
Economics is scracity because they have alternative uses... It is the important characteristics of economy
Who gets how much in an economy is best described by which of the following central problems?
- a)What to produce
- b) For whom to produce
- c) How to produce
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Who gets how much in an economy is best described by which of the following central problems?
a)
What to produce
b)
For whom to produce
c)
How to produce
d)
None of these
|
Anuj Choudhury answered |
For whom to produce refers to selection of the category of people who will ultimately consume the goods, i.e. whether to produce goods for more poor and less rich or more rich and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people.
In a market economy, the central problems are solved by- a) Supply of goods
- b) Planning authority
- c) Demand for goods
- d) Market mechanism
Correct answer is option 'D'. Can you explain this answer?
In a market economy, the central problems are solved by
a)
Supply of goods
b)
Planning authority
c)
Demand for goods
d)
Market mechanism
|
Puja Nambiar answered |
To solve the problems through market or price mechanism ie., what goods are to be produced and what quantities, which methods for production are to be employed for the production of goods and how the output is to be distributed, should be decided by the free play of the forces of demand and supply.
One or more persons living together and having a common budget is called:- a)A family
- b)Organisation
- c)Household
- d)All commodities in a house
- e)
Correct answer is option 'C'. Can you explain this answer?
One or more persons living together and having a common budget is called:
a)
A family
b)
Organisation
c)
Household
d)
All commodities in a house
e)
|
Vikas Kapoor answered |
A household consists of one or more people who live in the same dwelling and share meals. It may also consist of a single family or another group of people.
A PPC is downward sloping and____________ to the origin. Choose the correct option.- a)Convex
- b)Concave
- c)Inverse U shaped
- d)U shaped
Correct answer is option 'B'. Can you explain this answer?
A PPC is downward sloping and____________ to the origin. Choose the correct option.
a)
Convex
b)
Concave
c)
Inverse U shaped
d)
U shaped
|
Leena Hotwani answered |
P.P.C. is concave to the origin due to increase in marginal rate of transformation.
Price determination of a commodity is a subject matter of microeconomics.- a)False
- b)True
- c)Can’t say
- d)Conditional
Correct answer is option 'B'. Can you explain this answer?
Price determination of a commodity is a subject matter of microeconomics.
a)
False
b)
True
c)
Can’t say
d)
Conditional
|
Prem Yadav answered |
Price of a commodity is decided by demand and supply for it in the economy and aggregate demand supply are macro variables
Normative economics states- a)What ought to be
- b)Central problems of an economy
- c)What was
- d)What is
Correct answer is option 'A'. Can you explain this answer?
Normative economics states
a)
What ought to be
b)
Central problems of an economy
c)
What was
d)
What is
|
Priya Patel answered |
Normative economics. Normative economics (as opposed to positive economics) is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.
One or more persons living together and having a common budget is called:- a)A family
- b)Organisation
- c)Household
- d)All commodities in a house
Correct answer is option 'C'. Can you explain this answer?
One or more persons living together and having a common budget is called:
a)
A family
b)
Organisation
c)
Household
d)
All commodities in a house
|
Manisha Patel answered |
Allocation of resource means distribution of resource. Distribution of resource means factory of production i.e land, labour , capital and entreprenureship . so allocation of resource result in production of goods and services
All attainable combinations will lie- a)Under the PPC only
- b)On the PPC only
- c)On and under the PPC
- d)Above the PPC only
Correct answer is option 'C'. Can you explain this answer?
All attainable combinations will lie
a)
Under the PPC only
b)
On the PPC only
c)
On and under the PPC
d)
Above the PPC only
|
|
Aryan Khanna answered |
A production possibilities frontier (PPF) is a diagram that illustrates the possible production points for an economy based on its resources and technology.Production points on a PPF are possible and efficient. Production points on a PPF represent efficient use of all of the economy’s resources.
The basic economic problem arises in- a) All Economies
- b) Mixed Economies
- c) Socialist economies
- d) Market Economies
Correct answer is option 'A'. Can you explain this answer?
The basic economic problem arises in
a)
All Economies
b)
Mixed Economies
c)
Socialist economies
d)
Market Economies
|
|
Aniket Basu answered |
Economic problem arises mainly due to two reasons- (i) human wants are unlimited (ii) means to satisfy human wants are scarce. The problem of scarcity is faced by an individual and the society. With wants unlimited and resources scarce, our wants cannot be fulfilled.
Do you agree that the PPC indicates maximum production capacity of an economy- a) Yes
- b) Never
- c) Sometimes
- d) No
Correct answer is option 'A'. Can you explain this answer?
Do you agree that the PPC indicates maximum production capacity of an economy
a)
Yes
b)
Never
c)
Sometimes
d)
No
|
|
Aryan Khanna answered |
The production possibility curve shows the maximum output combination of two goods and services that an economy can produce with all resources fully employed.
Larger production of ___________ goods would lead to higher production in the future.- a)Nuclear Power
- b)Electricity
- c)Capital
- d)Coal
Correct answer is option 'C'. Can you explain this answer?
Larger production of ___________ goods would lead to higher production in the future.
a)
Nuclear Power
b)
Electricity
c)
Capital
d)
Coal
|
Bibek Desai answered |
A capital good is a durable good that is used in the production of goods or services. Capital goods are one of the three types of producer goods, the other two being land and labour which are also known collectively as primary factors of production.
The study of jute industry is a macroeconomic study. This statement is- a)False
- b)True
- c)Can’t say
- d)Conditional
Correct answer is option 'A'. Can you explain this answer?
The study of jute industry is a macroeconomic study. This statement is
a)
False
b)
True
c)
Can’t say
d)
Conditional
|
Harsh Prajapati answered |
Bcoz macro. studies the economy as a whole.ex:- aggregate demand,aggregate supply.jute industry is a part of micro.
Price determination of a commodity is a subject matter of microeconomics.- a) True
- b) Can’t say
- c) False
- d) Conditional
Correct answer is option 'A'. Can you explain this answer?
Price determination of a commodity is a subject matter of microeconomics.
a)
True
b)
Can’t say
c)
False
d)
Conditional
|
Vaishnavi Bajaj answered |
Micro economics deals with the behaviour of individual economic units such as consumers and business firm and is concerned with the determination of relative prices of commodities and factors of production.
As they see Opportunity cost means - a)The money value of an opportunity in producing a good
- b)Cost of a resource used in production
- c) The best alternative use of a resource
- d) Next best alternative foregone
Correct answer is option 'D'. Can you explain this answer?
As they see Opportunity cost means
a)
The money value of an opportunity in producing a good
b)
Cost of a resource used in production
c)
The best alternative use of a resource
d)
Next best alternative foregone
|
Jatin Sharma answered |
**Explanation:**
Opportunity cost is the value of the next best alternative that is forgone when a choice is made. It is the cost of not choosing the next best alternative. In other words, it is the value of the best option that is sacrificed in order to choose a different option.
Here is a detailed explanation of why option 'D' is the correct answer:
**Next best alternative foregone:**
Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made. When resources are limited, choosing to allocate them towards one option means sacrificing the benefits that could have been gained from the next best alternative. This is the essence of opportunity cost.
**Example:**
For example, suppose a person has the option to either start a business or go to college. If they choose to start a business, the opportunity cost would be the benefits that could have been gained from going to college. Conversely, if they choose to go to college, the opportunity cost would be the potential benefits of starting a business.
**Comparison with other options:**
Options A, B, and C are not the correct answers because they do not fully capture the concept of opportunity cost. While option A suggests that opportunity cost refers to the money value of an opportunity in producing a good, opportunity cost is not limited to just the money value. It also encompasses the value of the alternative uses of resources.
Option B refers to the cost of a resource used in production which is not necessarily the same as opportunity cost. While the cost of a resource is certainly a factor to consider when calculating opportunity cost, it is not the only factor. Opportunity cost takes into account the value of the next best alternative.
Option C suggests that opportunity cost is the best alternative use of a resource. While this is partly true, it does not fully capture the idea that opportunity cost is the value of the best option that is forgone when a different option is chosen.
Therefore, option 'D' is the correct answer as it best captures the concept of opportunity cost by stating that it is the next best alternative foregone.
Opportunity cost is the value of the next best alternative that is forgone when a choice is made. It is the cost of not choosing the next best alternative. In other words, it is the value of the best option that is sacrificed in order to choose a different option.
Here is a detailed explanation of why option 'D' is the correct answer:
**Next best alternative foregone:**
Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made. When resources are limited, choosing to allocate them towards one option means sacrificing the benefits that could have been gained from the next best alternative. This is the essence of opportunity cost.
**Example:**
For example, suppose a person has the option to either start a business or go to college. If they choose to start a business, the opportunity cost would be the benefits that could have been gained from going to college. Conversely, if they choose to go to college, the opportunity cost would be the potential benefits of starting a business.
**Comparison with other options:**
Options A, B, and C are not the correct answers because they do not fully capture the concept of opportunity cost. While option A suggests that opportunity cost refers to the money value of an opportunity in producing a good, opportunity cost is not limited to just the money value. It also encompasses the value of the alternative uses of resources.
Option B refers to the cost of a resource used in production which is not necessarily the same as opportunity cost. While the cost of a resource is certainly a factor to consider when calculating opportunity cost, it is not the only factor. Opportunity cost takes into account the value of the next best alternative.
Option C suggests that opportunity cost is the best alternative use of a resource. While this is partly true, it does not fully capture the idea that opportunity cost is the value of the best option that is forgone when a different option is chosen.
Therefore, option 'D' is the correct answer as it best captures the concept of opportunity cost by stating that it is the next best alternative foregone.
Which central problem explains ‘who gets more and who gets less’?
- a)Scarcity of resources
- b)For whom to produce
- c)What to produce
- d)How to produce
Correct answer is option 'A'. Can you explain this answer?
Which central problem explains ‘who gets more and who gets less’?
a)
Scarcity of resources
b)
For whom to produce
c)
What to produce
d)
How to produce
|
Janhavi Banerjee answered |
The inability of a society to allocate resources efficiently?
Any allocation of resources result in- a)Consumption of goods
- b)Inefficient utilization
- c)Wastage of resources
- d)Production of goods and services
Correct answer is option 'D'. Can you explain this answer?
Any allocation of resources result in
a)
Consumption of goods
b)
Inefficient utilization
c)
Wastage of resources
d)
Production of goods and services
|
Ahtaniya Khan answered |
D.
coz allocation of resources means making optimum utilisation of resources... i.e. resources are fully utilized only when they are used production purpose.. without d wastes of resources.
coz allocation of resources means making optimum utilisation of resources... i.e. resources are fully utilized only when they are used production purpose.. without d wastes of resources.
The problem of growth in an economy means- a) Having limited goods and services to enjoy a high standard of living
- b) Having more goods and services to enjoy a high standard of living
- c) Having enough goods and services to enjoy a high standard of living
- d) Having same goods and services to enjoy a high standard of living
Correct answer is option 'B'. Can you explain this answer?
The problem of growth in an economy means
a)
Having limited goods and services to enjoy a high standard of living
b)
Having more goods and services to enjoy a high standard of living
c)
Having enough goods and services to enjoy a high standard of living
d)
Having same goods and services to enjoy a high standard of living
|
Rajat Patel answered |
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
An individual in economics is- a)An individual decision making unit
- b)A human being only
- c)A good
- d)A dependent unit
Correct answer is option 'A'. Can you explain this answer?
An individual in economics is
a)
An individual decision making unit
b)
A human being only
c)
A good
d)
A dependent unit
|
Knowledge Hub answered |
A decision-making unit (DMU) is an individual - a group of individuals who are participants in a decision-making process, who share a common goal or goals which the decision will hopefully help them to achieve and who share the risk arising from the decision.
For a farmer increasing sacrifice of potatoes for each unit of onions will produce _______ shape of his PPC.- a)Concave
- b) Hyperbola
- c)Straight
- d)Convex
Correct answer is option 'A'. Can you explain this answer?
For a farmer increasing sacrifice of potatoes for each unit of onions will produce _______ shape of his PPC.
a)
Concave
b)
Hyperbola
c)
Straight
d)
Convex
|
Rohit Joshi answered |
Marginal ooportunity cost is defined as the amount of one good that needs to be given up in order to increase the production of the other good by one unit. It is calculated as Units of good one sacrificed/ units of the other good obtained. PPC is concave to origin because marginal opportunity cost increase due to law of diminshing returns.
In a centrally planned economy, the central problems are solved by- a)Planning authority
- b)Market mechanism
- c)Demand for goods
- d)Supply of goods
Correct answer is option 'A'. Can you explain this answer?
In a centrally planned economy, the central problems are solved by
a)
Planning authority
b)
Market mechanism
c)
Demand for goods
d)
Supply of goods
|
Tanya Mishra answered |
Yeah its planning authority or government of ones country that takes all the major decisions regarding economy
In which economy do consumers and producers make choices based on market forces of supply and demand?- a)Market economy
- b)Open economy
- c)Controlled economy
- d)Command economy
Correct answer is option 'A'. Can you explain this answer?
In which economy do consumers and producers make choices based on market forces of supply and demand?
a)
Market economy
b)
Open economy
c)
Controlled economy
d)
Command economy
|
Soya Chanithma answered |
Yes, because producers are there to supply consumers needs and wants .producers are the people who investigate wants. so both should be take part in the economy of a country.
The Marginal opportunity cost of producing Good X is- a)The marginal cost of Good X produced
- b) The money spent on producing Good X
- c) The cost of production
- d) The quantity of the Good Y sacrificed
Correct answer is option 'D'. Can you explain this answer?
The Marginal opportunity cost of producing Good X is
a)
The marginal cost of Good X produced
b)
The money spent on producing Good X
c)
The cost of production
d)
The quantity of the Good Y sacrificed
|
Arpita Nambiar answered |
Marginal opportunity cost is an economic term that analyzes the effect of producing additional units of a product on the costs of a business, as well as the opportunities the companies give up to produce more of a product.
If MOC decreases, the shape of PPC will be- a) Inverted
- b) Straight
- c) Convex
- d) Concave
Correct answer is option 'C'. Can you explain this answer?
If MOC decreases, the shape of PPC will be
a)
Inverted
b)
Straight
c)
Convex
d)
Concave
|
Naveen Choudhary answered |
PC can be convex to origin if MOC is decreasing, i.e. less and less unites of a commodity are sacrificed for gain of one additional unit.
If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?- a) 25 tonnes of steel
- b) 30 tonnes of steel
- c) 5 tonnes of steel
- d) 1 ton of steel
Correct answer is option 'C'. Can you explain this answer?
If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?
a)
25 tonnes of steel
b)
30 tonnes of steel
c)
5 tonnes of steel
d)
1 ton of steel
|
Naina Sharma answered |
Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Stated differently, an opportunity cost represents an alternative given up when a decision is made. This cost is, therefore, most relevant for two mutually exclusive events.
Which of the statements given above is/are correct? i. The economic problem arises due to the scarcity of resources and unlimited wants. ii. The decision of what to produce is solely based on consumer preferences without considering resource limitations. iii. The distribution of goods in an economy does not address the inequality of income among individuals. iv. Alternative uses of resources require an economy to make choices about production.- a) i and iv
- b) ii and iii
- c) i, iii and iv
- d) ii and iv
Correct answer is option 'A'. Can you explain this answer?
Which of the statements given above is/are correct?
i. The economic problem arises due to the scarcity of resources and unlimited wants.
ii. The decision of what to produce is solely based on consumer preferences without considering resource limitations.
iii. The distribution of goods in an economy does not address the inequality of income among individuals.
iv. Alternative uses of resources require an economy to make choices about production.
a)
i and iv
b)
ii and iii
c)
i, iii and iv
d)
ii and iv
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Pj Commerce Academy answered |
Statement i is correct as the economic problem stems from the conflict between limited resources and unlimited wants. Statement ii is incorrect because the decision of what to produce must consider the limitations of resources. Statement iii is incorrect because the distribution of goods does address income inequality. Statement iv is correct as alternative uses of resources necessitate choices in production. Therefore, the correct statements are i and iv.
A movement along a PPC implies- a) Redistribution of technology
- b)Redistribution of wealth
- c) Reallocation of income
- d) Reallocation of resources
Correct answer is option 'D'. Can you explain this answer?
A movement along a PPC implies
a)
Redistribution of technology
b)
Redistribution of wealth
c)
Reallocation of income
d)
Reallocation of resources
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Aniket Basu answered |
The movement along the PPC from left to right shows that in order to produce more units of capital goods, the economy must sacrifice some amount of consumer goods.
If MOC increases, the shape of PPC will be- a)Concave
- b) Inverted
- c) Convex
- d) Straight
Correct answer is option 'A'. Can you explain this answer?
If MOC increases, the shape of PPC will be
a)
Concave
b)
Inverted
c)
Convex
d)
Straight
|
|
Janhavi Banerjee answered |
MOC refers to the number of units of a commodity sacrificed to gain one additional unit of another commodity. In case of PPF, MOC is always increasing, i.e. more and more units of a commodity have to be sacrificed to gain an additional unit of another commodity.PPF is concave shaped because of increasing marginal opportunity costs, i.e. more and more units of one commodity are sacrificed to gain an additional unit of another commodity.
The shape of an ideal PPC is due to which of the following- a)Increasing Marginal Rate of Substitution
- b)Increasing Marginal Opportunity Cost
- c)Constant Marginal Rate of Substitution
- d)Decreasing Marginal Opportunity cost
Correct answer is option 'B'. Can you explain this answer?
The shape of an ideal PPC is due to which of the following
a)
Increasing Marginal Rate of Substitution
b)
Increasing Marginal Opportunity Cost
c)
Constant Marginal Rate of Substitution
d)
Decreasing Marginal Opportunity cost
|
Ssc Cgl answered |
The ideal shape of the PPC is typically concave to the origin, reflecting increasing marginal opportunity cost. As more resources are allocated to produce one good, the opportunity cost of producing additional units of that good increases, leading to a bowed-out shape. This indicates that resources are not equally efficient in producing both goods, causing the opportunity cost to rise as production shifts.
Hence, Correct Answer - Option B
What does a point below a PPC show- a) Underutilization of resources
- b) The optimum combination of two goods
- c) Overutilization of resources
- d) Growth of resources
Correct answer is option 'A'. Can you explain this answer?
What does a point below a PPC show
a)
Underutilization of resources
b)
The optimum combination of two goods
c)
Overutilization of resources
d)
Growth of resources
|
Pritam Malik answered |
A point below a Production Possibility Curve (PPC) represents underutilization of resources. Let's break down the explanation in detail:
1. Understanding the PPC:
The PPC is a graphical representation of the maximum combinations of two goods that an economy can produce using all its available resources and technology efficiently. It shows the trade-off between producing different combinations of goods.
2. Shape of the PPC:
The PPC is typically downward sloping, convex to the origin, indicating the concept of increasing opportunity cost. This means that as an economy produces more of one good, it must give up increasing amounts of the other good.
3. Points on the PPC:
Points on the PPC represent the maximum possible production levels given the available resources and technology. These points indicate full utilization of resources, where the economy is efficiently allocating its resources to produce the optimal combination of goods.
4. Points below the PPC:
Points below the PPC represent inefficient utilization of resources. This occurs when an economy is not using all its available resources or not using them efficiently. At these points, the economy is producing less than its maximum potential output.
5. Reasons for underutilization:
a) Unemployment: If there is unemployment in the economy, it means that the available labor resources are not fully utilized, resulting in underutilization.
b) Idle capacity: If capital resources such as factories, machinery, or equipment are not operating at their full capacity, it leads to underutilization.
c) Inefficient resource allocation: If resources are not allocated in the most efficient way, the economy may produce less than its maximum potential.
6. Consequences of underutilization:
a) Opportunity cost: Underutilization means that the economy is not fully utilizing its resources to produce more goods and services. This leads to a missed opportunity to increase output and improve living standards.
b) Inefficiency: Underutilization indicates that resources are not being used efficiently, resulting in wasted potential and lower productivity.
c) Economic growth: Underutilization hinders economic growth as it represents a gap between the current production level and the economy's maximum potential output.
In conclusion, a point below a PPC indicates underutilization of resources, meaning that the economy is not using all its available resources efficiently to produce at its maximum potential.
1. Understanding the PPC:
The PPC is a graphical representation of the maximum combinations of two goods that an economy can produce using all its available resources and technology efficiently. It shows the trade-off between producing different combinations of goods.
2. Shape of the PPC:
The PPC is typically downward sloping, convex to the origin, indicating the concept of increasing opportunity cost. This means that as an economy produces more of one good, it must give up increasing amounts of the other good.
3. Points on the PPC:
Points on the PPC represent the maximum possible production levels given the available resources and technology. These points indicate full utilization of resources, where the economy is efficiently allocating its resources to produce the optimal combination of goods.
4. Points below the PPC:
Points below the PPC represent inefficient utilization of resources. This occurs when an economy is not using all its available resources or not using them efficiently. At these points, the economy is producing less than its maximum potential output.
5. Reasons for underutilization:
a) Unemployment: If there is unemployment in the economy, it means that the available labor resources are not fully utilized, resulting in underutilization.
b) Idle capacity: If capital resources such as factories, machinery, or equipment are not operating at their full capacity, it leads to underutilization.
c) Inefficient resource allocation: If resources are not allocated in the most efficient way, the economy may produce less than its maximum potential.
6. Consequences of underutilization:
a) Opportunity cost: Underutilization means that the economy is not fully utilizing its resources to produce more goods and services. This leads to a missed opportunity to increase output and improve living standards.
b) Inefficiency: Underutilization indicates that resources are not being used efficiently, resulting in wasted potential and lower productivity.
c) Economic growth: Underutilization hinders economic growth as it represents a gap between the current production level and the economy's maximum potential output.
In conclusion, a point below a PPC indicates underutilization of resources, meaning that the economy is not using all its available resources efficiently to produce at its maximum potential.
Labour intensive technique would get chosen in- a) Labour surplus economy
- b) Developing economies
- c) Developed economies
- d) Capital surplus economy
Correct answer is option 'A'. Can you explain this answer?
Labour intensive technique would get chosen in
a)
Labour surplus economy
b)
Developing economies
c)
Developed economies
d)
Capital surplus economy
|
Pranavi Das answered |
The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ratios. In such situations, the marginal product of laboris likely to fall below a bargaining wage, related to the average rather than the marginal product.
The basic assumption regarding resources while drawing a PPC is- a)Resources can be put to a particular use
- b)Resources depend on the kind of goods produced
- c)Resources are unlimited
- d)Resources are constant and given
Correct answer is option 'D'. Can you explain this answer?
The basic assumption regarding resources while drawing a PPC is
a)
Resources can be put to a particular use
b)
Resources depend on the kind of goods produced
c)
Resources are unlimited
d)
Resources are constant and given
|
Nilesh Chawla answered |
Explanation:
PPC or Production Possibility Curve is a graphical representation of all possible combinations of two goods that an economy can produce with the given resources and technology.
The basic assumption regarding resources while drawing a PPC is that resources are constant and given.
This means that:
- The quantity and quality of resources available in the economy remain the same during the period under consideration.
- The technology or production techniques used to produce the goods also remain the same.
- The economy is assumed to be operating at full employment, meaning all available resources are being utilized efficiently.
- There is no external interference or changes in the economy, such as natural disasters, changes in government policies, etc.
This assumption is necessary because it simplifies the analysis of the production possibilities of an economy and helps in understanding the trade-offs involved in producing one good over the other.
If resources were not constant and given, the PPC would shift, and the analysis would become more complex.
Therefore, the assumption that resources are constant and given is a fundamental assumption while drawing a PPC.
PPC or Production Possibility Curve is a graphical representation of all possible combinations of two goods that an economy can produce with the given resources and technology.
The basic assumption regarding resources while drawing a PPC is that resources are constant and given.
This means that:
- The quantity and quality of resources available in the economy remain the same during the period under consideration.
- The technology or production techniques used to produce the goods also remain the same.
- The economy is assumed to be operating at full employment, meaning all available resources are being utilized efficiently.
- There is no external interference or changes in the economy, such as natural disasters, changes in government policies, etc.
This assumption is necessary because it simplifies the analysis of the production possibilities of an economy and helps in understanding the trade-offs involved in producing one good over the other.
If resources were not constant and given, the PPC would shift, and the analysis would become more complex.
Therefore, the assumption that resources are constant and given is a fundamental assumption while drawing a PPC.
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Economics for JAMB
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