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| 1. |
Production Possibility Frontier is: |
| Answer» <html><body><p>Downward Sloping <br/>Concave Shaped<br/>Both (a) and (b) <br/>Either (a) or (b)</p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :The two <a href="https://interviewquestions.tuteehub.com/tag/basic-15343" style="font-weight:bold;" target="_blank" title="Click to know more about BASIC">BASIC</a> <a href="https://interviewquestions.tuteehub.com/tag/characteristics-19445" style="font-weight:bold;" target="_blank" title="Click to know more about CHARACTERISTICS">CHARACTERISTICS</a> or features of PPF are:1. PPF slopes downwards:PPF shows all the maximum possible combination of two goods, which can be produced with the available resources and technology. In such a case, more of one good can be produced only by taking resources away from the production of another good.2. PPF is Concave Shaped:PPF is concave shaped because of increasing marginal opportunity costs, i.e. more and more units of one commodity are sacrificed to <a href="https://interviewquestions.tuteehub.com/tag/gain-469945" style="font-weight:bold;" target="_blank" title="Click to know more about GAIN">GAIN</a> an <a href="https://interviewquestions.tuteehub.com/tag/additional-367648" style="font-weight:bold;" target="_blank" title="Click to know more about ADDITIONAL">ADDITIONAL</a> unit of another commodity.</body></html> | |