Explore topic-wise InterviewSolutions in Current Affairs.

Shape of PPF will be a straight line sloping down ward.

A planned economy is an economy in which the central problems are solved by Government through planning.

PP Frontier slope downward because production of one commodity (x) can be increased only by decreasing the production of second commodity (y).

Alternate use of resources mean more than one uses to which a resource can be put and imply that resource can be used only for one purpose at a time.

Resources are scare (limited) and they have alternative uses.

Marginal rate of transformation (MRT) is the ratio of one good sacrificed to produce more unit of the other good.

Positive economic analysis deals with actual or realistic situation. It expresses what is.

An economic problem arises due to scarcity of resources having alternative uses in relation to unlimited wants.

In microeconomics we study the behaviour of consumer, firms, industries and markets etc.

Macroeconomics studies economic activities (including economic issues or economic problems) at the level of an economy as a whole.

Stocks are the variables whose magnitude is measured at a point of time.

Detailed Answer: 

Variables whose magnitude is measured at a particular point of time are called stock variables.

For Example, stock of goods in the godown as on 31st March, 2009.

Aggregate Savings and Investment, Cross National Product, Total Employment, National Income, Aggregate Demand, Consumption, etc.

Macroeconomics studies economic activities (including economic issues or economic problems) at the level of an economy as a whole.

Two examples of Macroeconomics are:

(i) Theory of National Income,

(ii) Theory of Employment.

Individual units are studied in microeconomics whereas macroeconomics studies the aggregates of the economy.

Microeconomics is that branch of economics which studies economic problems (or economic issues) relating to individual economic units like a consumer or a producer.