In the context of economic theory, the 'Production Possibility Frontier' shifts outward when there is: MCQ with Answer and Explanation

In the context of economic theory, the 'Production Possibility Frontier' shifts outward when there is:
A. Economic growth due to increase in resources or technology
B. Inefficient allocation of resources
C. Decrease in the labour force
D. Unemployment of resources
Answer: Option A
Solution (By JKSSB Mock Tests)
An outward shift of the PPF indicates economic growth, which can result from an increase in the quantity or quality of resources or from technological progress.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on land and property is:
A. not applicable
B. 5%
C. 0%
D. 18%

Correct Answer: Option A


Explanation:
Sale of land and completed buildings is not subject to GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The Rolling Plan concept was introduced in India during:
A. Eighth Plan
B. First Plan
C. Third Plan
D. Janata Party government after the Fifth Plan

Correct Answer: Option D


Explanation:
The Janata government introduced the Rolling Plan after the Fifth Five Year Plan.

This question belongs to: Economy GK Economy Set 1
Question #3
In the theory of consumer behaviour, the income effect of a price change for a normal good is:
A. Zero
B. Indeterminate
C. Positive
D. Negative

Correct Answer: Option C


Explanation:
For a normal good, a fall in price increases real income, leading to an increase in quantity demanded (positive income effect), reinforcing the substitution effect.

This question belongs to: Economy GK Economy Set 1