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Question
Slope of PPC shows the ratio between the loss of output and gain of output.
Slope of PPC shows the ratio between the loss of output and gain of output.
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Solution
The correct option is A True
Slope of PPC shows the ratio between the loss of output and gain of output.- this is a true statement.The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other. The formula to calculate marginal opportunity cost is sacrifice/gains which measures sacrifice in terms of gains.
Slope of PPC shows the ratio between the loss of output and gain of output.- this is a true statement.The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy makes when it shifts resources and technology from production of one commodity to the other. The formula to calculate marginal opportunity cost is sacrifice/gains which measures sacrifice in terms of gains.
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