Explain the meaning of opportunity cost with the help of production possibility schedule.[CBSE, All India 2013]
Opportunity cost of any commodity is the amount of other good which has been given up in order to produce that commodity. Alternatively opportunity cost of a given activity is the value of the next best activity.
Initially at combination B, in order to produce one unit of X, the economy has to sacrifice one unit of Y. So, at combination B, opportunity cost is 1 unit. At combination C, for producing additional unit of commodity X, the economy has to sacrifice 2 units of commodity Y. So, at combination C, opportunity cost is 2 units. Similarly, at combination D, for producing additional unit of commodity X, the economy has to sacrifice 3 units of commodity Y. So, at combination C, opportunity cost is 3 units and so on.
Giving reason comment on the shape of Production Possibilities curve based on the following schedule.
Production in an economy is below to its potentiality due to unemployment. Government starts employment generation schemes. Explain its effects by using production possibility curve.
A doctor has a private clinic in New Delhi and his annual earnings are Rs 10 lakh. If he works in a government hospital in New Delhi, his annual earning will be Rs 8 lakh. What is the opportunity cost of having a clinic in New Delhi?
A country's resources are fully and p efficiently employed. The problem of scarcity exists. What advice would be given to raise the efficiency level of the human resource to fight scarcity?
Giving reason comment on the shape of Production Possibilities Curve based on the following schedule.
Define Opportunity Cost. [CBSE 2007]
Or
Give the meaning of Opportunity Cost'. [CBSE 2008, 09]
Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.
The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?
What will likely be the impact of large scale outflow of foreign capital on Production Possibility Curve of the economy and why?
Define Marginal Opportunity Cost. Explain the concept with a hypothetical numerical example.[CBSE Sample Paper 2016]
PPC is concave shaped as production of one good can be increased only by reducing quantity of another good.
Giving reasons, state whether the following statements are true or false.
An economy always manages to meet all the needs of the people living in the country.
Explain the meaning of opportunity cost with the help of production possibility schedule.[CBSE, All India 2013]
How does Maruti Udyog Ltd. fix the prices of its cars, is it studied in macroeconomics?
Give reasons for the following statements:
Give one/two examples of microeconomics study.[CBSE 2004C, 09, 09C, 11C;AI 2004, 05, 07, 11]
Or
Name any three variables of micro-economics.
What is likely to be the impact of Make in India' appeal to the foreign investors by the Prime Minister of India, on the production possibilities frontiers of India? Explain.
As water resources are limited in our country, how can we economise the water resources so that it could not cause a future problem for us? Give any two suggestions.
The problems of scarcity of resources and their alternate uses arise everywhere but particularly in backward countries. For their solution non-economic considerations can be stressed. How?
A teacher is getting Rs 6,000 per month as salary. If he leaves the job and starts tuition work, he is expected to earn Rs 5,000 per month. What would be his opportunity cost?
Giving reason comment on the shape of Production Possibilities curve based on the following schedule.
Give reasons for the following statements:
State any three assumptions on which a production possibilities curve is based. [CBSE 2013 Q]
Scarcity of resources is a universal phenomenon and is not confined to poor and backward countries only. Comment.
Why is it that on one hand coal is found in plenty, yet it is scarce while on the other, a rotten vegetable is rare but not scarce?
Define microeconomics.[CBSE 2007C; AI 2005, 2012]
Or
Give the meaning of microeconomics.[CBSE 2009]