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| 1. |
What does the slope of PPF indicate? |
| Answer» <html><body><p></p>Solution :PPF is a downward sloping <a href="https://interviewquestions.tuteehub.com/tag/concave-927978" style="font-weight:bold;" target="_blank" title="Click to know more about CONCAVE">CONCAVE</a> shaped curve. <br/> (i) Its downward slope <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> that more of one good can be <a href="https://interviewquestions.tuteehub.com/tag/produced-592947" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCED">PRODUCED</a> only by taking resources away from the production of another good. <br/> (ii) Its concave shape indicates that more and more units of one commodity have to be <a href="https://interviewquestions.tuteehub.com/tag/sacrifice-1193053" style="font-weight:bold;" target="_blank" title="Click to know more about SACRIFICE">SACRIFICE</a> to gain 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> | |