Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Given below is a production possibility schedule showing different quantities of two commodities – Cars and Computers which can be produced in an economy.

 

Cars

Computers

A.

150

10

B.

140

20

C.

120

30

D.

90

40

What is Production Possibility Curve known as?

Options:

Production Possibility Frontier

Transformation Curve

Transaction curve

Both 1 and 2

Correct Answer:

Both 1 and 2

Explanation:

Production Possibility Curve can also be called Production Possibility Frontier or Transformation curve. These terms all refer to the same economic concept that illustrates the relationship between the maximum quantities of two goods that an economy can produce with its limited resources.