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.
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. The PPC shows the different combinations of two goods that can be produced using all available resources and technology efficiently. It represents the boundary of production possibilities given the existing constraints.
The reason provided is a correct explanation of the assertion. Points inside the PPC represent an inefficient allocation of resources because the economy is not utilizing its resources fully, resulting in a lower level of production than what is possible. Points outside the PPC, on the other hand, represent combinations of goods that are currently unattainable given the available resources and technology. These points lie beyond the production capacity of the economy.
Therefore, the correct answer is Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
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.
Question : Assertion: The marginal rate of transformation (MRT) measures the opportunity cost of producing one additional unit of a good.
Reason: MRT reflects the production possibilities curve (PPC) slope and shows the trade-off between two goods.
Question : Assertion: A mixed economy combines elements of both market and command economies.
Reason: In a mixed economy, the government intervenes to correct market failures and ensure equitable distribution of resources.
Question : Assertion: Both India and Pakistan follow the mixed economy model.
Reason: Both initiated their development process on the basis of economic planning in 1947.
Question : Assertion: Delegation enhances employee growth and development.
Reason: Delegation involves assigning tasks without any responsibility.
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