Download App

Introduction of Micro-Economics — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction of Micro-Economics3 Marks
Question
Can a production possibility curve be a straight line? Explain.
✓

Answer

Yes, a production possibility curve can be a straight line, if marginal rate of transformation is constant. MRT is constant, if all the resources are equally efficient in production of all goods. But, this is not a common situation because resources are actually not equally efficient in the production of all goods. So, PPC is generally concave.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Introduction of Micro-Economics→Introduction of Micro-Economics — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

“MC should be rising at the point of Producer's Equilibrium". Comment.
→
It is generally observed that a firm under monopolistic competition, produces an excess quantity. In your view, is it a wastage of scarce resources?
→
When the price of a commodity rises from Rs$10$ to Rs$11$ per unit, its quantity supplied rises by $100$ units. Its Price Elasticity of Supply is $2$. Calculate its quantity supplied at the increased price.
→
Explain the central problem of "What is produced and in what quantities".
→
Complete the following table.
Units of labour 0 1 2 3 4 5
Total product - - - - - -
Average product - - - - - -
Marginal product 0 10 12 14 14 12
→
Give the meaning of 'inferior good' and explain the same with the help of an example.
OR
What is an inferior good? In what manner is the demand curve of such a good affected when income of the consumer increases? Use diagram.
→
Suppose there are two consumers in the market for a good and their demand functions are as fallows:
$d_1 (p) = 20 - p$ for any price less than or equal to $20$.
$d_1 (p) = 0$ at any price greater than $20$.
$d_1 (p) = 30 - 2p$ for any price less than or equal to $15$.
$d_1 (p) = 0$ at any price greater than $15$.
Find out the market demand function.
→
Firm ‘A’ produces both jeans and shirts. How will an increase in the price of jeans affect the supply curve of the shirts?
→
Why is the number of firms small in an oligopoly market? Explain.
→
Under perfect competition, the seller is a price taker and under monopoly, he is price maker. Explain.
→