Download App

MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY2 Marks
Question
Does production possibility frontier indicate the actual level of output or potential level of output?
✓

Answer

Production possibility frontier indicates potential level of output. However, if resources are utilised fully as well as efficiently, the actual level of output coincides with the potential level of output.

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 MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY→MICROECONOMICS CH : 2 CENTRAL PROBLEMS OF AN ECONOMY — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Why should TP be maximum when MP = 0?
→
Normal profit is a part of total cost. Is it true?
→
What do the short run marginal cost, average variable cost and short run average cost curves look like?
→
How will the consumer move along his IC in a situation when $MRS _{ XY }>\frac{ P _{ X }}{ P _{ Y }} $ ?
→
When price is constant for a firm (as under perfect competition) producer's equilibrium is struck only when commodity price coincides with MC, and MC is rising. Do you agree?
→
"Petrol is becoming cheaper, yet the demand for cars is not rising."
Does it mean that the law of demand is not operative?
→
If more & more resources are constantly explored and new techniques of production are constantly discovered, don't you think a day will come when our central problems will be solved once for all?
→
What should the firm's fixed cost of production, when average variable cost is ₹50 per unit, total cost of production is ₹ 500, and only 2 units of output are produced?
→
'Stage of increasing returns (when MP is increasing) is economically redundant, because the producer will not strike his equilibrium in this stage.' Defend or refute the statement.
→
"Economics is about making choices in the presence of scarcity." Explain.
→