Question

Consider the following table:

Production Possibilities	A	B	C	D	E
Guns (Units)	0	1	2	3	4
Butter (Units)	10	9	7	4	0

If the above points A to E are depicted on a graph, then such PPF would be ______.

विकल्प

• Convex to the origin

• Concave to the origin

• Straight line

• Rectangular hyperbola

Answer 1

If the above points A to E are depicted on a graph, then such PPF would be Concave to the origin.

Explanation:

The table shows increasing MRT: butter sacrificed for each additional gun rises from 1 to 2 to 3 to 4 units. Increasing MRT makes the PPF concave to the origin.