WorksheetsPPC AND CENTRAL PROBLEM OF ECONOMY
Total questions: 43
Worksheet time: 1hrs 26mins
Micro economics deals with ?
Individual units
Economy as a whole
both
none
an economy where all the economic decisions are taken by the government is known as ?
market economy
Centrally planned economy
Mixed economy
None
Positive statements in economics talk about
opinions
Facts
both
none
Scarcity is the mother of all economic problems
True
False
What to produce is the central problem of choice of technique of production
True
False
Central Problems are not faced by Developed economies.
True
False
The Slope of PPC is known as (a)
As we move from one point to another on PPC towards the right, its slope _____
Increases
Decreases
remains constant
first increases then decreases
Points on the PPC show
Under utilization of resources
Full and efficient utilization of resources
Growth of Resources
They show nothing
A production combination that is achieved with under utilization of resources is shown
on the PPC
outside the PPC
Inside the PPC
it is not shown
if in the production of two goods X and Y, we move from the point (30,40) to (40,0) then the MRT is
0
2:1
3:1
4:1
Labour intensive Technique are chosen in a
Labour surplus economy
capital surplus economy
Developed economy
Developing Economy
The word Economics is most closely connected with the word
free
scarcity
unlimited
restricted
The
fundamental economic problem being faced is
Unlimited
human wants
Limited
wants and unlimited resources
Unlimited
wants and scarcity of resources
Limited
wants and limited resources
When an economy is operating on the PPC, it indicates:
potential output > actual output
potential output= actual output
potential output< actual output
None of these
The opportunity cost of 1000 kg of rice produced on a land which can also produce 800 tonnes of wheat is:
1000 kg of wheat
800 tonnes of wheat
8,000 tonnes of wheat
all of the above
Which is not a central problem of an economy?
What to produce?
How to produce?
How to maximize private profit?
For whom to produce?
Which of the following is related to the problem ‘how to produce’?
Factoral distribution of income
the choice of technique
The choice of product
None of these
Concavity of PPC implies:
increasing slope
decreasing slope
constant slope
none of these
Central Planned Economy is on the basis of
Maximizing social welfare
Supply and Demand forces in the market
Both A and B
Other
What do you mean by Marginal Opportunity Cost ?
It is the ratio between the loss of output and gain of output
It refers to the total loss of output
It is the ratio between the loss of input and gain of input
Both B and C
What do you mean by Opportunity cost?
Is the value of a factor in its next best alternative use.
Is the value of factor in its previous alternative use
Both A and B
__________ is a system which provides the people a means to work and earn a living.
Economics
Economy
When the problems of choice (economic problems) are studied and addressed at the level of
individuals, it is called __________economics
Micro
Macro
Prices are determined by the market but, the
government controls the prices of essential
goods. This is a feature of ________ economy?
Market
Centrally Planned
Mixed
_______economics is the economics of ‘what ought to be’. It deals with ‘opinions’ or Value Judgments of the economists related to economic issues or economic problems
Positive
Normative
____________is a curve showing different possible combinations of
two goods which can be produced with the available resources
Demand
Transformation
Which of the following is not an assumption of PPC
The amount of resources in an economy are fixed, but these can be transferred from one use
to another
The level of Technology is assumed to be constant
Resources are not equally efficient in production of all goods. i.e resources are use-specific
With the given resources only three goods can be produced
PPC helps us in knowing the potential and actual levels of output
agree
disagree
If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell?
They are being over efficient
They are being inefficient
It is not impossible with the given resources
They are still efficient, just at another point
What does point B represent?
Production at greater than the country's minimum potential
Production is less than the country's minimum potential
Production is greater than the country's maximum potential
Production at the country's maximum potential
Which letter represents the O.C. of moving from E to C?
H
I
J
K
L
Which letter represents the O.C. of moving from C to E?
H
I
J
K
L
Which one considered a choice?
G
F
A,B,C,D
E
Which coordinate is impossible to be produced?
F
G
E
A
Which coordinate is inefficient to produce both products?Multiple answer
B
F
G
E
The following diagram shows the production possibility frontier for an economy that produces bread and honey.
If the economy is initially at point W, then the opportunity cost of moving to point X is
6 units of honey.
8 units of honey.
12 units of bread.
23 units of bread.
WHAT IS THE SLOPE OF PPC?
(a)
PPC SLOPES (a) .
