Question : Assumptions for Production Possibility Curve is/are:

Option 1: The amount of resources in an economy is fixed

Option 2: With the help of given resources, only two goods can be produced

Option 3: Resources are not fully equally efficient in production of all products.

Option 4: All of the above

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 : ______shows a variety of combinations of these two products that provide the same level of satisfaction:-

Option 1: Indifference curve

Option 2: ISO quant

Option 3: Marginal utility curve

Option 4: ISO cost curve

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 : 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