Micro

Introduction

Easy

What causes the production possibility frontier concave downward shape towards the origin?

Decreasing opportunity cost of resources.

Increasing opportunity cost of resources.

Constant opportunity cost of resources.

Because it is not related cost of resources.

✅ Correct Option: 2

The PPF is concave to the origin because resources are not equally efficient in producing both goods. As more of one good is produced, progressively larger amounts of the other must be given up, i.e. opportunity cost increases.

2025: 22 May Shift 1

......... is an economy in which there is both the private sector and the government.

2025: 29 May Shift 2

An institution which organizes the free interaction of individuals pursuing their respective economic activities, is known as...........

2023: 20 June Shift 1

Which of the following is not a central problem of an economy?

2022: 19 July Shift 2

A hypothetical economy has a piece of land which, in order of priority, can be used for building a school, a hospital, a factory and a residential complex. What is the opportunity cost of choosing the best alternative ?

2023: 30 May Shift 1

Identify the impact of unemployment on PPC (Production Possibility Curve).

2026: 15 May Shift 1

There is always a cost of having a little more of one good in terms of the amount of the other good that has to be forgone. This cost is known as........................

What causes the production possibility frontier concave downward shape towards the origin?

Solution

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