Question : Why does Production Possibility Curve slope downward?

Option 1: More of one good can be produced only by taking resources away from the production of another good.

Option 2: Less of one good can be produced only by taking resources away from the production of another good.

Option 3: More of one good can not be produced only by taking resources away from the production of another good.

Option 4: None of the above

Question : Which of the following statements is correct regarding the production possibility frontier?

I. It gives the combinations between two goods that can be produced when the resources of the economy are fully utilised.

II. It illustrates the production possibilities of the economy.

Option 1: Only I

Option 2: Only II

Option 3: Both I and II

Option 4: Neither I nor II

Question : The curve gives the maximum amount of corn produced in the economy for any given amount of cotton and vice-versa. This curve is called the _____.

Option 1: Total revenue curve

Option 2: Indifference curve

Option 3: Production Possibility Frontier

Option 4: Demand curve

Question : Production possibility curve refers to the graphical representation of possible combinations of two goods that can be produced with given __________ and _________.

Option 1: Resources, technology

Option 2: Distribution, income

Option 3: Goods, services

Option 4: None of these

Question : The other name of Production Possibility Curve is _____________.

Option 1: Production Possibility Boundary

Option 2: Transformation Curve

Option 3: Transformation Boundary

Option 4: All of the above