1. 2. 3. 4. 5. 6. 7.

Why is PPC downward sloping from left to right? What does increasing MOC along a PPC mean? Which factors lead to a shift of the PPC? What does a rightward shift of PPcurve indicate? What is economics all about? Massive unemployment shifts the PPC to the left. Defend or refute. A lot of people die and many factories are destroyed because of severe earthquake in the country. How will it affect countrys PPC 8. Give two examples of under-utilisation of resources. 9. Give two examples of growth of Resources. 10. Why does technological advance or growth of resources shift the PPC to the right. 11. How is a market economy different from a centrally planned economy. 12. How are central problems solved in market and centrally planned economy. 13. From the following PP schedules, calculate MRT of good X. Production Possibilities Production of good X (units) Production of good y (units) A 0 14 B 1 13 C 2 11 D 3 8 E 4 3

Qes4. Why is PP curve concave to the origin. Qes5. Does production take place on a PP curve? Explain. Qes6. Can a PP curve be a straight line? Qes7. Why do Central problems arise? Explain. Qes8. Calculate marginal opportuinty cost of cloth in terms of sugar at different production possibilities from the data. Production Possibilities A B C D E F Cloth (million mt) o 1 2 3 4 5 Sugar (million kg) 50 45 40 35 25 20