ECONOMICS (CBSE/UGC NET)

ECONOMICS

SCARCITY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A PPC shows,
A
The best combination of goods to produce.
B
The plans for increasing output in the short run.
C
What can be produced with various combinations of resources.
D
Resources are constrained by choices.
Explanation: 

Detailed explanation-1: -The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.

Detailed explanation-2: -The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable.

Detailed explanation-3: -The production possibilities curve illustrates the maximum possible output for two products when there are limited resources.

Detailed explanation-4: -T3: How does a production possibilities frontier show efficient uses of a country’s resources? A production possibilities frontier shows efficient uses of a country’s resources because it shows that the country is using all of their resources efficiently to maximize production.

Detailed explanation-5: -Scarcity. Efficiency. Opportunity costs. Gains from trade.

There is 1 question to complete.