Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative:

Assertion (A): Production Possibility Frontier (PPF) is a Concave Shaped curve.

Reason (R): PPF shows all the maximum possible combination of two goods, which can be produced with the available resources and technology.

Options

• Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is True but Reason (R) is False.

• Assertion (A) is False but Reason (R) is True.

Answer 1

Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

Explanation:

PPF is concave to the origin due to increasing Marginal Opportunity Cost (MOC). The Reason explains the meaning of PPF but does not explain its concave shape.