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 : Production Possibility Curve (PPC) is concave shaped because

Option 1: Marginal Rate of Transformation (MRT) is increasing.

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

Option 3: Both 1 and 2

Option 4: None of the above

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 : 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 : Marginal rate of exchange also denotes:

Option 1: Slope of Demand Curve

Option 2: Slope of budget line 

Option 3: Slope of IC Curve

Option 4: None of the above

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