Match List I with List II
|
List - I |
List – II |
||
|
(A) |
Scarcity |
(I) |
Judgements and Suggestions |
|
(B) |
Opportunity Cost |
(II) |
Possible combinations of two goods |
|
(C) |
Production Possibility Frontier |
(III) |
Unlimited Human Wants |
|
(D) |
Normative Economics |
(IV) |
Next Best Alternative |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
| List I | List II | Explanation |
|---|---|---|
| (A) Scarcity | (III) Unlimited Human Wants | Scarcity exists because human wants are unlimited, while resources are limited. |
| (B) Opportunity Cost | (IV) Next Best Alternative | The opportunity cost is the next best alternative that is forgone when making a decision. |
| (C) Production Possibility Frontier | (II) Possible combinations of two goods | The production possibility frontier shows the maximum combinations of two goods that can be produced with limited resources. |
| (D) Normative Economics | (I) Judgements and Suggestions | Normative economics deals with judgements and suggestions about what the economy "ought" to be like. |