12th Class Economics Solved Paper - Economics 2012 Outside Delhi Set-I

  • question_answer
    Define Production Possibility Curve. Explain why it is downward sloping from left to right.

    Answer:

    A production possibility curve is a hypothetical representation. Which represents the amount of two different goods that can be produced with the full use of given resources in an economy under technological conditions.
              PP curve slopes downward from left to right because of the fact that in a combination if we produce more of one good with limited resources, the less we produce of the another good.


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