Unit 1 Introduction

Time 01 hour

Q1 Classify as True or False ( 5*2=10)

· Economic problem and scarcity of resources are not related to each other

· A free medicine given to the patients in hospital is not a scarce commodity

· PPC shows increasing slope

· With fuller utilisation of resources , an economy can shift to point beyond PPC

· Opportunity cost is an avoidable cost

Q2 Why there should be huge unemployment in India when scarcity of resources is a universal fact -3 marks

Q3 Apply the concept of PPC to explain the problem of scarcity -2 marks

Q4 Explain the problem of What to produce – 2 marks

Q5 What factors lead to shift of the PPC – 3 marks