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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 ______.
Options
Convex to the origin
Concave to the origin
Straight line
Rectangular hyperbola
MCQ
Fill in the Blanks
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Solution
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.
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Chapter 1: Introduction - OBJECTIVE QUESTIONS [Page 1.35]
