'An economy always produces on, but not inside a PPC'. Defend or refute.

Solution

The statement is refuted because it is not essential that an economy always produces on PPC. It is bound to produce inside a PPC when its resources work inefficiently or resources are underemployed.

Some More Questions From Introduction Chapter

What is meant by macroeconomic theory?

What is the difference between microeconomics and macroeconomics?

Briefly state meaning of the following terms as used in economics.
1. Economy (D 2010 C), 2. Goods, 3. Services, 4. Wants, 5. Resources,
6. Households, 7. Firms, 8. Commodities, 9. Production, 10. Consumption

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Introduction

'An economy always produces on, but not inside a PPC'. Defend or refute.

Some More Questions From Introduction Chapter

What is meant by macroeconomic theory?

What is the difference between microeconomics and macroeconomics?

Briefly state meaning of the following terms as used in economics.
1. Economy (D 2010 C), 2. Goods, 3. Services, 4. Wants, 5. Resources,
6. Households, 7. Firms, 8. Commodities, 9. Production, 10. Consumption

Explain central problems with the help of PP curve. How does PP curve help in explaining the central problems?

(i) Why is PP curve downward sloping from left to right? (D 2006C)

(ii) Why does PP curve look concave to the origin?

Can the PP curve shift?

State factors which cause rightward (upward) shift of PP curve.

How is PPC affected by unemployment in the economy? Explain.

Massive unemployment shifts the PPC to the left. Defend or refute.

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For Daily Free Study Material Join wiredfaculty

Introduction

'An economy always produces on, but not inside a PPC'. Defend or refute.

Some More Questions From Introduction Chapter

What is meant by macroeconomic theory?

What is the difference between microeconomics and macroeconomics?

Briefly state meaning of the following terms as used in economics.1. Economy (D 2010 C), 2. Goods, 3. Services, 4. Wants, 5. Resources,6. Households, 7. Firms, 8. Commodities, 9. Production, 10. Consumption

Explain central problems with the help of PP curve. How does PP curve help in explaining the central problems?

(i) Why is PP curve downward sloping from left to right? (D 2006C) (ii) Why does PP curve look concave to the origin?

Can the PP curve shift?

State factors which cause rightward (upward) shift of PP curve.

How is PPC affected by unemployment in the economy? Explain.

Massive unemployment shifts the PPC to the left. Defend or refute.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Briefly state meaning of the following terms as used in economics.
1. Economy (D 2010 C), 2. Goods, 3. Services, 4. Wants, 5. Resources,
6. Households, 7. Firms, 8. Commodities, 9. Production, 10. Consumption

(i) Why is PP curve downward sloping from left to right? (D 2006C)

(ii) Why does PP curve look concave to the origin?