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  • Question
  • The production possibilities curve illustrates the basic principle that


  • Options
  • A. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
  • B. the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
  • C. an economy will automatically obtain full employment of its resources.
  • D. an economy's capacity to produce increases in proportion to its population size.

  • Correct Answer
  • if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. 

    Explanation

    A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good is nothing but a production possibilities curve.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    More questions

    • 1. LPG consists of mainly

    • Options
    • A. methane, ethane and hexane
    • B. ethane, hexane and nonane
    • C. methane, hexane and nonane
    • D. methane, butane and propane
    • Discuss
    • 2. Rainbow is produced when sunlight fall on drops of rain. Which of the following physical phenomena are responsible for this?

      1. Diffusion
      2. Refraction
      3. Internal reflection

    • Options
    • A. I, II and III
    • B. I and II
    • C. II and III
    • D. I and III
    • Discuss
    • 3. The principal copper deposits of India lie in which of the following places?

    • Options
    • A. Hazaribag and Singbhum of Bihar
    • B. Khetri and Daribo areas of Rajasthan
    • C. Anantapur in Andhra Pradesh
    • D. Siwaliks in Uttar Pradesh and in Karnataka
    • Discuss
    • 4. What kind of data can you send by e-mail?

    • Options
    • A. Audio
    • B. Pictures
    • C. Video
    • D. All of the above
    • Discuss
    • 5. The ELECTRIC BATTERY, who's charged with inventing this one?

    • Options
    • A. Hertz
    • B. Amper
    • C. Galvani
    • D. Volta
    • Discuss
    • 6. What African-American inventor received 5 patents in the field of shoemaking?

    • Options
    • A. Elijah McCoy
    • B. Jan Ernst Matzeliger
    • C. Ernest Just
    • D. Lewis Latimer
    • Discuss
    • 7. On whom did the U. S. President George W. Bush bestow, in 2002, the U.S.'s highest award for life time achievement in the field of scientific research?

    • Options
    • A. Arun Netravalli
    • B. Dr.Hargoving Kohrana
    • C. Subramania Chandrasekar
    • D. Professor C. Radhakrishna Rao
    • Discuss
    • 8. Tripping is associates with

    • Options
    • A. Snooker
    • B. Volleyball
    • C. Football
    • D. Cricket
    • Discuss
    • 9. Who created Pretty Good Privacy (PGP)?

    • Options
    • A. Phil Zimmermann
    • B. Tim Berners-Lee
    • C. Marc Andreessen
    • D. Ken Thompson
    • Discuss
    • 10. Vinod Kambli on his Test debut made 28 runs having a strike rate of :

    • Options
    • A. 63.58
    • B. 46.66
    • C. 12.55
    • D. 91.07
    • Discuss


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