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Given below is a production possibility curve for growing cereals and pulses. Answer the questions related to this curve. A (MILLION $500 TONNES ) 3000
Given below is a production possibility curve for growing cereals and pulses. Answer the questions related to this curve. A (MILLION $500 TONNES ) 3000 CEREALS 1800- 1000 2000 300D B PULSES ( MILLION TONNES ) 1. What is the nature of the slope and shape of the PPC. Give reason in a sentence each. 2. What is the opportunity cost (marginal rate of transformation) of moving from point E to F and F to G. Draw a table to show the MRT. 3. What is the reason for increasing opportunity cost? 4. Consider 2 economies, A & B. B allocates more of its resources to Investment, especially in R&D. A allocates more resources to consumer goods. Where would you see greater outward shift in PPC over time and why
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