Date of submission: 5 June 2015
Q1. A farmer can produce 1000 quintals of sugar on a plot of land; with same resources he can also produce 800 quintals of rice. What is the marginal opportunity cost of producing sugar?
Q2. PPC assumes
A) Inefficient use of resources
B) Growth of resources
C) Fuller utilization of resources
D) Lesser availability of resources
Q3. Can there be an economy without central problems? Explain why?
Q4. Massive unemployment will shift the PPC to the left .Defend or refute.
Q5. Give two examples of growth of resources and under utilization of resources.
Q6. Draw the shapes of PPC when marginal opportunity cost is
A) Decreasing C) Increasing
Q7. Draw a PPC and represent the following on it:
A) Growth of resources
B) Fuller utilization of resources
C) Under utilization of resources
D) Unattainable combination of resources
Q8. A lot of people were killed in Yemen due to the terrorist invasion .How will it affect the PPC of Yemen’s economy?
Q9. Why is the study of national income in India considered a macroeconomic study?
Q10. Calculate MOC and draw PPC from the following:
Good x: 0 1 2 3 4 5
Good y: 30 28 24 18 10 0
Q11. Calculate MOC and comment about the shape of PPC.
Production of wheat: 0 1 2 3
Production of rice : 12 7 3 0
Q12. What is opportunity cost? Explain it with the help of an example.