The Shri Ram School Moulsari Campus
Subject: Economics
Class XI
Worksheet 3
Chapter 3 – BASIC PROBLEMS OF AN ECONOMY
1
Which of the following statement is incorrect?
a) Wants are limited
b) Resources are limited
c) Resources have alternative uses
d) Resources are finite.
2
Economic problem is also known as
a) Problem of speed
b) Problem of time
c) Problem of Choice
d) Problem of technology
3
Basic problem arises because of –
a) Wants are limited, Resources are limited, Resources have alternative
uses
b) Wants are unlimited, Resources are limited, Resources have alternative
uses
c) Wants are limited, Resources are unlimited, Resources have alternative
uses
d) Wants are limited, Resources are limited, Resources do not have
alternative uses
4
Which of the following is not a central problem of an economy?
a) What to produce
b) Where to produce
c) How to produce
d) For whom to produce
Match the correct option
5
What to produce and in what
quantities?
Transformation Curve
For whom to produce?
Problem of allocation of resources
How to produce?
Distribution of output ( goods and
services )
Choice of technique of production
PPC
5
A country name ____________wants to produce goods but from hundreds
of goods it needs to decide whether to produce more of civilian goods like
food, clothes, furniture or whether to produce more of war goods like guns
and tanks or capital goods like machinery, tools or consumer goods like
bread, butter etc.
Which Central Problem is been referred here?
Why can’t they produce all the goods in infinite quantity?
What is the other name of this central problem?
After deciding on the goods to be produced and in what quantities, the
economy faces another question i.e., HOW TO PRODUCE, because there
are broadly two types of techniques available
What are the two types of techniques used in production?
________________________
What are two major determinants deciding factor to choose the techniques?
6
Which of the following statement is not true for PPC?
a) It shows the combination of goods which economy will have to produce.
b) It shows the potential of the economy in terms of production.
c) It shows the combination of goods which the economy is able to
produce.
d) It shows the combination of goods which are attainable using all the
resources efficiently.
7
Fill in the blanksA production possibility curve shows various combination of
goods that
can be produced with available _______and with given amount of
PPC is also known as _______________ curve and Production Possibility
Frontier.
8
9
Tick the assumptions on which a PPC is based- Amount of productive resources are fixed.
-
All productive resources are inefficiently utilized.
-
Resources are equally efficient to produce all the goods.
-
There is no change in the technology.
-
Resources are not equally efficient to produce all the goods.
-
All productive resources are inefficiently utilized
Giving reason explain the slope of PPC.
10
Make a Production Possibility Schedule and Draw a PPC using then same.