Question : A country produces two commodities: X and Y. Its production possibilities are shown in the following table:
| Possibility | A | B | C | D | E | F |
| Commodity X | 20 | 14 | 9 | 5 | 2 | 0 |
| Commodity Y | 0 | 1 | 2 | 3 | 4 | 5 |
The shape of PPF is _____________
Option 1: Convex
Option 2: Concave
Option 3: Constant
Option 4: None of these
Correct Answer: Convex
Solution :
| Possibility | A | B | C | D | E | F |
| Commodity X | 20 | 14 | 9 | 5 | 2 | 0 |
| Commodity Y | 0 | 1 | 2 | 3 | 4 | 5 |
| MRT = Change in units sacrificed/Change in units gained | -- | 6:1 | 5:1 | 4:1 | 3:1 | 2:1 |
PPF is convex shaped due to decreasing MRT i.e. less and less units of commodity Y are sacrificed to gain an additional unit of commodity X. Hence, the correct answer is 1.
Related Questions
Question : India produces two commodities: X and Y. Its production possibilities are shown in the following table:
| Possibility | A | B | C | D | E | F |
| Commodity X | 20 | 14 | 9 | 5 | 2 | 0 |
| Commodity Y | 0 | 1 | 2 | 3 | 4 | 5 |
Calculate MRT for the possibility C.
Option 1: 5:1
Option 2: 4:1
Option 3: 6:1
Option 4: 2:1
Question : Determine the marginal opportunity cost of 10 units of commodity X:
| Commodity X | Commodity Y |
| 20 | 10 |
| 10 | 14 |
Option 1: MOC = 10
Option 2: MOC = 20
Option 3: MOC = 14
Option 4: MOC = 2.5
Question : Match the columns (As per Census 2011).
| States | Demographic characteristics |
| 1. Kerala | a. Highest sex ratio |
| 2. Haryana | b. Lowest sex ratio |
| 3. Goa | c. Highest percentage share of urban population |
Option 1: 1-a, 2-b, 3-c
Option 2: 1-b, 2-a, 3-c
Option 3: 1-a, 2-c, 3-b
Option 4: 1-c, 2-b, 3-a
Question : Match the column-
| Column I | Column II |
|
1 Break-even point |
A. Income elastic |
|
2 Slope of consumption curve |
B. Value can be more than 1 |
|
3 APC |
C. MPC |
|
4 Induced investment |
D. C=Y |
Option 1: 1-D, 2-C, 3-B, 4-A.
Option 2: 1-A, 2-D, 3-C, 4-B
Option 3: 1-B, 2-A, 3-D, 4-C
Option 4: 1-C, 2-B, 3-A, 4-D
Question : The following table shows the number of centuries scored by given five cricketers in the past 5 years.
| Cricketers | Years | 2021 | 2020 | 2019 | 2018 | 2017 |
| A | 1 | 0 | 1 | 0 | 1 | |
| B | 1 | 0 | 2 | 1 | 1 | |
| C | 1 | 2 | 0 | 0 | 1 | |
| D | 0 | 0 | 1 | 1 | 0 | |
| E | 0 | 1 | 1 | 0 | 1 |
Who scored the maximum number of centuries?
Option 1: A
Option 2: C
Option 3: B
Option 4: E
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