Question : Assertion: Economic growth can shift outward the production possibilities curve (PPC)d.
Reason: Economic growth occurs when there is an increase in a country's resources or technological advancement.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
The assertion is true. Economic growth refers to an increase in a country's real output of goods and services over time. When an economy experiences economic growth, it can produce more goods and services than before, which allows the PPC to shift outward.
The reason provided is a correct explanation of the assertion. Economic growth can be achieved through various factors, including an increase in resources such as labor, capital, or natural resources, as well as advancements in technology and innovation. These factors enable an economy to produce more output with the same amount of resources or to produce the same output with fewer resources, leading to an outward shift of the PPC.
Therefore, both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Question : Assertion: The production possibilities curve (PPC) illustrates the maximum combination of two goods that an economy can produce.
Reason: Any point inside the PPC represents inefficiency, while points outside the PPC are unattainable given the available resources.
Question : Assertion: Economic growth alone is sufficient to eliminate poverty.
Reason: Economic growth leads to increased income levels, resulting in poverty reduction.
Question : Assertion: Poverty eradication requires inclusive growth and equitable distribution of resources.
Reason: Inclusive growth ensures that the benefits of economic development reach all sections of society, reducing income disparities.
Question : Assertion: Economic growth can lead to a reduction in unemployment.
Reason: Increased investment and business expansion creates more job opportunities.
Question : Assertion: Cyclical unemployment occurs due to fluctuations in the business cycle.
Reason: During economic recessions, businesses reduce their workforce to cut costs.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile