Question

QUESTION 10 A production possibilities frontier with increasing opportunity cost is considered and one with constant opportunity cost is considered A concave, convex OB.convex, concave. C.concave, a straight line. Dvertical; horizontal QUESTION 11 The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is a central idea of the A production possibilities frontier B. supply and demand model C. circular flow diagram D.classical model

Answer 1

Question 10: With increasing opportunity costs, the production possibility curve is concave to the origin and with constant costs, the production possibility is a straight line. Thus, the option C is correct. Production Possibility curve at an increasing opportunity costs Good X Good X Production possibity curre at constant opportunity costs Concave to the origin straight line ER Good Y Good Y Question 11:

From the given statement, we can say that the central idea is circular flow diagram. Thus, the option C is correct. Land, labor capital and en eprenues Factor payment House hold firms consumption expenditure Good services