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## Write true and false 1. The production possibilities frontier illustrates all goods that can be produced by an economy. **False** 2. The production possibilities frontier is downward sloping and reflects tradeoffs in choices. **True** 3. The production possibilities frontier is useful for demons...

## Write true and false 1. The production possibilities frontier illustrates all goods that can be produced by an economy. **False** 2. The production possibilities frontier is downward sloping and reflects tradeoffs in choices. **True** 3. The production possibilities frontier is useful for demonstrating both scarcity and productive inefficiency. **False** 4. The productivity of any input is independent and is not affected by the other resources that are used. **False** 5. By better utilizing existing resources, an economy can produce at a point outside of its current production possibilities frontier. **True** 6. Economics is concerned with the way in which scare resources allocated among the alternative uses to satisfying the human wants. **True** 7. If capital is not being used efficiently, an economy cannot be operating at a point along its production possibilities frontier. **True** 8. In a free enterprise economy the basic problems of economy are solved by the price mechanism. **True** 9. The basic problem of economy arises when there are unlimited resources available to fulfil the limited wants of society. **False** 10. The basic problem of economy will not solved by only the creation of unlimited resources. **False** 11. This problem of choice of technique of production arises because both labour and capital are available in limited quantities in an economy. **True** 12. Any combination of products inside the production possibility frontier is productively inefficient. **True** 13. For the growth of any economy, the resources available to the economy like labour, capital and technology should grow. **True** 14. In poor nations food takes a larger portion of consumer spending, so the price elasticity of demand is larger. **True** 15. Business economics focuses on the economic issues and problems related to business organization, management, and strategy. **True**