In the graph, what is the most cloth the economy can produce if it produces no wheat? A PPC for wheat (tonnes) and cloth (lakh metres), bowed out from the origin, from 45 lakh m of cloth with no wheat to 50 tonnes of wheat with no cloth. Point A (20 wheat, 15 cloth) lies inside the curve, point B (40 wheat, 27 cloth) lies on it, and point C (45 wheat, 40 cloth) lies outside it.

In the graph, what is the most cloth the…

In the graph, what is the most cloth the economy can produce if it produces no wheat?

Question 33

MediumOriginal question

In the graph, what is the most cloth the economy can produce if it produces no wheat?

A PPC for wheat (tonnes) and cloth (lakh metres), bowed out from the origin, from 45 lakh m of cloth with no wheat to 50 tonnes of wheat with no cloth. Point A (20 wheat, 15 cloth) lies inside the curve, point B (40 wheat, 27 cloth) lies on it, and point C (45 wheat, 40 cloth) lies outside it.

27 lakh metresCorrect answerYour answer40 lakh metresCorrect answerYour answer45 lakh metresCorrect answerYour answer50 lakh metresCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Where the PPC meets the cloth axis, wheat is zero; that point is 45 lakh metres.

Worth noting

50 is the most wheat, on the other axis.

Concept: Reading the intercept of a PPC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe production possibility curve

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

In the graph, what is the most cloth the economy can produce if it produces no wheat?

Question 33

Explanation