Question : A country produces two commodities: X and Y. Its production possibilities are shown in the following table:
| Possibility | A | B | C | D | E | F |
| Commodity X | 20 | 14 | 9 | 5 | 2 | 0 |
| Commodity Y | 0 | 1 | 2 | 3 | 4 | 5 |
The shape of PPF is _____________
Option 1: Convex
Option 2: Concave
Option 3: Constant
Option 4: None of these
Correct Answer: Convex
Solution :
| Possibility | A | B | C | D | E | F |
| Commodity X | 20 | 14 | 9 | 5 | 2 | 0 |
| Commodity Y | 0 | 1 | 2 | 3 | 4 | 5 |
| MRT = Change in units sacrificed/Change in units gained | -- | 6:1 | 5:1 | 4:1 | 3:1 | 2:1 |
PPF is convex shaped due to decreasing MRT i.e. less and less units of commodity Y are sacrificed to gain an additional unit of commodity X. Hence, the correct answer is 1.
Related Questions
Question : India produces two commodities: X and Y. Its production possibilities are shown in the following table:
| Commodity X | Commodity |
Question : Match the columns (As per Census 2011).
| States | Demographic characteristics |
| 1. Kerala | a. Highest sex |
