Download App

Introduction of Micro-Economics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsIntroduction of Micro-Economics2 Marks
Question
Define Marginal Opportunity Cost. Explain the concept with a hypothetical numerical example.
✓

Answer

  1. Marginal oppor-tunity cost is an addition to a cost in terms of a number of units of a commodity sacrificed to produce one additional unit of another commodity.
  2. Marginal opportunity cost can also be termed marginal rate of transformation, Marginal rate of transformation is the ratio of number of units of a good sacrificed to produce one additional unit of another commodity.
$\text{MRT}{_\text{X,Y}}=\frac{\text{Amount of good Y Sacrificed}}{\text{Amount of good X gained}}=\frac{\Delta\text{Y}}{\Delta\text{X}}$
Production Possibilities (Combination)Rice (in lakh tons)Guns (in thous-ansd)Moc of Rice (in thousand Guns)MFT
A015--
B1141 ( =15-14)1G:1R
C2122 ( =14-12)2G:1R
D393 ( =12-9)3G:1R
E454 (= 9-5)4G:1R
F505 ( =5-0)5G:1R

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 "2 Marks Question" from Introduction of Micro-Economics→Introduction of Micro-Economics — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Why should a consumer buy more of a commodity even when Marginal Utility from every successive unit tends to decrease?
→
Explain how 'non-monetary exchanges' are a limitation in taking gross domestic product as an index of welfare.
→
Gulf countries have acquired more capital goods by selling oil to various countries. What would be its impact on Production Possibility Curve?
→
Explain four sources of supply of foreign exchange.
→
Explain the condition of consumer’s equilibrium with the help of utility analysis.
→
What do you mean by 'monotonic preferences'?
→
The Price Elasticity of Demand for a good is (-) 0.4. If its price increases by 5%, by what percentage will its demand fall? Calculate.
→
List the items of the current account of balance of payments account. Also, define ‘balance of trade’.
→
Explain the situation of deficient demand in an economy with the help of diagram.
→
Explain how increase in money supply causes inflation.
→