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. Unemployment of resources
B. Economic growth due to increase in resources or technology
C. Decrease in the labour force
D. Inefficient allocation of resources
Answer: Option B
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 data processing services is:
A. 5%
B. 12%
C. 28%
D. 18%

Correct Answer: Option D


Explanation:
Data processing services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Consumer Surplus' is the area:
A. Below the demand curve and above the price line
B. Above the supply curve and below the price line
C. Above the demand curve and below the price line
D. Below the supply curve and above the price line

Correct Answer: Option A


Explanation:
Consumer surplus is the difference between the maximum amount consumers are willing to pay and the amount they actually pay, represented by the area under the demand curve and above the market price.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Soft Loan' typically refers to:
A. Only short-term trade credit
B. Loans with commercial interest rates
C. Only domestic commercial bank loans
D. Loans with concessional interest rates and longer repayment periods

Correct Answer: Option D


Explanation:
Soft loans are provided by multilateral agencies or governments at below-market interest rates with longer maturities and grace periods, often for development purposes.

This question belongs to: Economy GK Economy Set 1