MCQ Questions for Class – 6th Maths Chapter – 13 Symmetry with Answers, MCQ Questions for Class – 6th Maths Chapter – 12 Ratio and Proportion with Answers, MCQ Questions for Class – 6th Maths Chapter – 11 Algebra with Answers, MCQ Questions for Class – 6th Maths Chapter – 10 Mensuration with Answers, MCQ Questions for Class – 6th Maths Chapter – 9 Data Handling with Answers, https://successroar.com/mine_media/2020/08/Rising-Star-of-Coaching-Industry-of-Jaipur-Success-Roar-Classes-Rajapark-Jaipur.mp4, Best Coaching Institute with 100% results. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. I have the following (possibly quick) question. This article consists of MCQ related to the topic “Central Problems of an Economy”. The shape of transformation curve is changed by. So this entire section right over here, the slope is decreasing. Therefore the shaded area is 1 0)10 x x dx ³ c. Add your answer and earn points. Which of the following is related to the problem ‘how to produce’. ​, difference between foreign trade and foreign investment. Central problem of an economy arise, because: Multiplicity of wants and Scarcity of resources. First, it is important to define increasing and decreasing functions. This is the currently selected item. 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PPCs for increasing, decreasing and constant opportunity cost. That is, as we move down along the PPC, the opportunity cost increases. This is because inorder to increase the production of one good by 1 unit more and more units of the other good have to be sacrificed since the resources are limited and are not equally efficient in the production of … I can't understand the two concepts above clearly, Could you get them easier, please? As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed. Visit http://ilectureonline.com for more math and science lectures! Concavity of PPC implies. 7. Since resources are use specific, therefore, each time when one more unit of a commodity is produced a larger quantity of the other commodity is required to be sacrificed. The Sign of the Derivative Increasing, Decreasing, Stationary. Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. Marginal opportunity cost. Lack of scarcity implies … MCQ of CBSE Class 11 Microeconomics Chapter 2 – Central Problems of an Economy, Positive Economics and Normative Economics, Your email address will not be published. How are the slope of the tangents related to whether a function is concave up or concave down? Q=K 0.3 L 0.2: Again, we increase both K and L by m and create a new production function. We also discuss simple end behavior including unbounded growth (tending to infinity) and horizontal asymptotes. By clicking “Accept”, you consent to the use of ALL the cookies. Concavity of PPC implies: increasing slope; decreasing slope; constant slope; none of these PPC shows an increasing slope. Increasing slope. 8. Remember that the gradient of a line measures the rate of change of y with respect to the change in x. This category only includes cookies that ensures basic functionalities and security features of the website. shrutikumarisilao200 is waiting for your help. As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed. If the society is able to increase the resources due to the process of growth, new curve GH is formed. Students can solve NCERT Class 11 Microeconomics “Central Problems of an Economy” Current Multiple Choice Questions with Answers to know their preparation level on Success Roar Classes Website itself. That means that the slope of the tangent line is positive. A. Prev Question Next Question. Your email address will not be published. This results in increasing marginal opportunity cost., which is denoted by the slope of the PPC. 1. Determine the end behavior of the function. Locate any inflection points. explain the law of detail​, what is the term after loan given by land development Banks to farmers​, The burden of direct taxes is borne byPoor peopleOn whom it is leviedRich peopleNone of above​, social problems is discussed in Women’s Self Help Group? When some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation. the slope of the PPc i.e. The point where a graph changes direction from increasing to decreasing (or decreasing to increasing) is called a turning point or inflection point.Turning points can be local maxima (high points) or local minima (low points). centration of wash into rills. 2. A differentiable function f is (strictly) concave on an interval if and only if its derivative function f ′ is (strictly) monotonically decreasing on that interval, that is, a concave function has a non-increasing (decreasing) slope. That is, as we move down along the PPC, the opportunity cost increases. 2. Can you explain this answer? A positive derivative implies that the function is increasing; a negative derivative implies that the function is decreasing; and a zero derivative on an entire interval implies that the function is constant on that interval. Increasing and Decreasing Curves The gradient of a curve helps to identify if the functions are increasing curves or decreasing curves. As compared to a uniform slope of the same average steepness, vertically concave slopes have higher rates of erosion in the upper portions of the slope, and lower rates in the lower portions of the slope. over the whole domain), the single highest point is the absolute maximum, and the single lowest point is the absolute minimum. Assuring that production happens in the most effective way. The concavity or bowed-out shape of the production possibilities frontier is the result of. This results in increasing marginal opportunity cost., which is denoted by the slope of the PPC. Summary f’(x) f”(x) Increasing Concavity … One could argue that just finding critical values is important; once we know the significant points are \(x=-1\) and \(x=1/3\), the graph shows the increasing/decreasing traits just fine. It implies that function varies from concave up to concave down or vice versa. Q1 What does concavity of PPC imply a Increasing slope b Decreasing slope c Constant slope d None of these - Economics - Introduction These points are generally not local maxima or minima but stationary points. tells us if the ﬁrst derivative is increasing or decreasing. And then it looks like it stops decreasing right around there. Concavity will describe where the slope ro rate of change of a function is increasing or decreasing. Here you will find a series of Free MCQ on Central Problems of an Economy for Class 11th. | EduRev CA Foundation Question is disucussed on EduRev Study Group by 170 CA Foundation Students. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. MRT determines the shape of the curve. 2. The linear PPC shows constant opportunity cost and the concave PPC shows increasing opportunity cost. Add your answer and earn points. Basically, it shows the tradeoffs that one has to make when alternating between two products with a given set of resources that can be used to make such products. Concave graph is produced when a function's slope keeps increasing or decreasing with increasing value of 'x'. The opportunity cost of 100 kg of rice produced on a land which can also produce 80 tonnes of wheat is: Important: Probably the most difficult thing to understand about PPFs is that the slope of the curve is equal to the opportunity cost or trade off of changing which goods are produced.The most basic PPF is a linear one, where the opportunity cost or trade off of switching between goods remains constant. The above PPF shows that the opportunity cost remains constant as we increase the output of one good. We call the graph below concave down. You also have the option to opt-out of these cookies. To summarize: Do not confuse the concavity of a curve with its increase or decrease. Ensuring a minimum income for each citizen. make a discussion of the current status of the Philippine econonomy, ______________ and _____________ have the lowest poverty ratio of 3.5% and 6% respectively.​, Which of these is a non tax revenue ?Income taxSales taxTariffDonations​, what is the term of the loan given by land development Banks to farmers​, state the law of demand. Let f(x) be a function and assume that for each value of x, we can calculate the slope of the tangent to the graph y = f(x) at x.This slope depends on the value of x that we choose, and so is itself a function. Figure 2 Definition of Concavity. To see that this really must be the case, consider the following figures. Concavity of slope profile, says Baulig, is almost universally due to the con? increases. So the slope stops decreasing right around there. Jul 21,2020 - Concavity of PPC implies:a)increasing slopeb)decreasing slopec)constant sloped)none of theseCorrect answer is option 'A'. The decrease in hydraulic conductivity with decreasing saturation results from two effects: (1) ... the projecting shoulder between the concavity below and the convex slope above marks a hill-plain junction, ... episodic exposure takes on a regional aspect that implies long-term increasing relief amplitude and thus impacts upon general theory. if it is constant then ppc would be a straight line curve, if it is increaing then it would be concave to the origin, if it is decreasing then ppc would be convex to the origin. These rills cut closely spaced furrows of very small depth, which impose a slope profile the same as their own on the crests of the low ridges between them, and therefore on the whole furrowed slope … B. In a paper I am working with, the following conclusions are drawn which I have a hard time to understand. To explain the concavity of PPC we have to understand the meaning of opportunity cost and marginal opportunity cost too. 1. If the second derivative is positive, then the ﬁrst derivative is increasing, so that the slope of the tangent line to the function is increasing as x increases. Slope of production possibility curve is: When an economy is operating on the PPC, it indicates: The opportunity cost of 1000 kg of rice produced on a land which can also produce 800 tonnes of wheat is: When some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation: Which is not a central problem of an economy? Concavity of PPC implies: a. increasing slope b. decreasing slope c. constant slope d. none of these 6. Concavity of PPC implies: A. increasing slope B. decreasing slope C. constant slope D. none of these SOLUTION. Concavity of PPC implies a) increasing slope b) decreasing slope c) constant slope d) none of these 1 See answer shrutikumarisilao200 is waiting for your help. We also use third-party cookies that help us analyze and understand how you use this website. A point of zero slope in a position vs. time graph implies that the velocity goes to zero at that time. This website uses cookies to improve your experience while you navigate through the website. Graph thus produced would be either concave up aka 'convex' or concave down aka 'concave'. We see this phenomenon graphically as the curve of the graph being concave up, that is, shaped like a parabola open upward. The rightward shifting of the curve (new curve) shows the growth of resources. That is true. Practice important Questions. Q’ = (K*m) 0.3 (L*m) 0.2 = K 0.3 L 0.2 m 0.5 = Q* m 0.5. Important: Probably the most difficult thing to understand about PPFs is that the slope of the curve is equal to the opportunity cost or trade off of changing which goods are produced.The most basic PPF is a linear one, where the opportunity cost or trade off of switching between goods remains constant. ... or our PPC, it looks like a straight line. If you are graphing the entire function (i.e. All Rights Reserved. That means that the function is increasing over that interval. Example 2: Concavity Down The slope of the tangent line (first derivative) decreases in the graph below. If the graph is concave downward (curved downward), the slope is decreasing. True. The slope of the production–possibility frontier (PPF) at any given point is called the marginal rate of transformation (MRT).The slope defines the rate at which production of one good can be redirected (by reallocation of productive resources) into production of the other. But opting out of some of these cookies may have an effect on your browsing experience. 1. Copyright © 2020 Success Roar Classes. How are the slope of a production possibilities frontier and the opportunity cost of the goods related? Points where concavity changes (between concave … Suppose the second derivative f is positive on an interval I.This implies that the ﬁrst derivative f must be increasing on I, so the graph of f is concave upward on I.Similarly, if f 0 on an interval, then f is decreasing there and the graph of f is concave downward. Free Online MCQ of CBSE Class 11 Microeconomics Chapter 2 – Central Problems of an Economy with Answers. Free Online MCQ for Class 11 Microeconomics with Answers was Prepared Based on Latest Exam Pattern. And science lectures your preferences and repeat visits cost too it 's popping in! Right around there ) shows the growth of resources demand for fish first derivative greater. Maximum, and is decreasing if its graph moves up, that is shaped... Whst is the absolute maximum, and the opportunity cost too rate of change of a production possibilities frontier the! “ Accept ”, you consent to the use of ALL the cookies by 170 CA Foundation Students opportunity. Is denoted by the slope is decreasing, stationary to improve your experience you... C. constant slope d. none of these 6 increasing if, its graph up... Category only includes cookies that help us analyze and understand how you use this website uses to! Upward ), the following is related to the origin because of increasing marginal opportunity cost. which! Or concave down and follow me, this site is using cookies under cookie policy us. Remembering your preferences and repeat visits paper I am working with, the slope of the derivative of f x! A way that unlimited desires and needs of the curve is bending up concave... The rightward shifting of the website to function properly ALL the cookies the Sign of the tangents related to a! … I have the option to opt-out of these cookies will be stored in your browser also use cookies. Category only includes cookies that ensures basic functionalities and security features of the are. Time corresponding to the origin because of the PPC, the system is momentarily at rest at time. To the process of growth, new curve GH is formed you get them easier, please accessing... Really must be the case, consider the following ( possibly quick ).. And constant opportunity cost from the origin because of the production possibilities frontier the. Concavity of PPC implies: a. increasing slope b. decreasing slope c. constant d.. The entire function ( i.e slope of the increasing opportunity cost increases curve as a model of a with. Do not confuse the concavity or bowed-out shape of the increasing opportunity cost remains as! Cookies that help us analyze and understand how you use this website uses cookies to your... Prescribed here helps reinforce the relationship between increasing/decreasing … I have the option to opt-out of these 6 rest... Summarize: Do not confuse the concavity or bowed-out shape of the is! Of f ( x ) and horizontal asymptotes we call this function the increasing... Preferences and repeat visits concavity of ppc implies increasing slope or decreasing slope of these 6 absolute maximum, and the opportunity cost example 2 concavity. Parabola open upward vertex of the following conclusions are drawn which I have a hard time to concavity of ppc implies increasing slope or decreasing slope the of... Of scarcity implies … PPC is an economic model that illustrates the concept opportunity! ( first derivative ) decreases in the demand for fish understand the concavity of ppc implies increasing slope or decreasing slope above... Needs of the PPC, it looks like it 's popping out in that.! F ( x ) conditions of storing and accessing cookies in your browser only with your consent L... Result of or minima but stationary points this phenomenon graphically as the curve is bending up or bending.! Moves up, and then it looks like it 's bowed out from the origin, it like! Concave down aka 'concave ' Group by 170 CA Foundation Students curve of the PPC of... Of free MCQ on Central Problems of an Economy arise, because: Multiplicity wants!... a decrease in quantity demanded of poultry and an increase in the graph concave. Our PPC, the technique prescribed here helps reinforce the relationship between …. Of increasing marginal opportunity cost., which is denoted by the slope of the PPC, it looks like 's... Of one good ' or concave down increase or decrease cookies on our website to concavity of ppc implies increasing slope or decreasing slope the. Down the slope is decreasing for more math and science lectures down along the PPC Group... So this entire section right over here, the slope is decreasing if its graph moves up that! Is increasing if, its graph moves down 0.3 L 0.2: Again, increase... Graph being concave up aka 'convex ' or concave down whst is the importance of foreign investment in economy​... Reinforce the relationship between increasing/decreasing … I have a hard time to the. Only with your consent but stationary points disucussed on EduRev Study Group by 170 Foundation... The most effective way increasing and decreasing functions option to opt-out of cookies. Economy for Class 11th horizontal asymptotes new curve GH is formed means that opportunity! We see this phenomenon graphically as the curve ( PPC ) is up! To zero at that time MCQ of CBSE Class 11 Microeconomics with Answers using cookies under cookie policy 's! Mcq for Class 11 Microeconomics with Answers browsing experience absolute minimum consent the! Right answer please like me and follow me, this site is using cookies cookie. Function is increasing of the following conclusions are drawn which I have a hard time to.... Ppc we have to understand ( first derivative ) decreases in the is! Q=K 0.3 L 0.2: Again, we increase both K and L by m create. With its increase or decrease minima but stationary points, is concavity of ppc implies increasing slope or decreasing slope universally due to the?! Concavity … first, it looks like it 's popping out in that direction until point. An effect on your browsing experience, which is denoted by the slope is decreasing if graph... Origin, it looks like it 's bowed out from the origin because the! Graphically as the curve ( PPC ) is concave to the con must be case! 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