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Central Problems & the PPC · Question 59 of 87

The economy produces 2 tonnes of wheat and 12 lakh m of cloth.

Question 59

MediumOriginal question

The table shows an economy's production possibilities.

CombinationWheat (tonnes)Cloth (lakh m)
A020
B118
C215
D311
E46

The economy produces 2 tonnes of wheat and 12 lakh m of cloth. This shows

Options for question 59

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. With 2 tonnes of wheat the PPC allows 15 lakh m of cloth (combination C).

  2. Producing only 12 means the point lies inside the PPC: some resources are idle or wasted.

Concept
Locating a combination against the PPC
Typical time
70 s
Your time
—
The rule this testsOpportunity cost and MRT
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.