If the percentage change in quantity supplied of commodity X is more

then the percentage change in the price of the commodity X, the coefficient

of price elasticity of supply would be _______________ : (Choose the correct alternative)

A production possibility curve (PPC) would be concave to the origin if marginal opportunity cost is : (Choose the correct alternative)

A. Increasing

B. Decreasing

C. Constant

D. Negative

OR

In the given figure X₁, Y₁ and X₂, Y₂ are production possibility frontiers for a hypothetical economy in two different time periods,

Period 1 and Period 2. A₁ and A₂, represent actual outputs in Period 1 and Period 2 respectively. P1 and P2, represent potential outputs in Period 1 and Period 2 respectively.

The economic growth over the two periods would be represented by movement from : (Choose the correct alternative)

A. P₁ to P₂

B. A₁ to A₂

C. A₁ to P₁

D. A₂ to P₂

The marginal product curve in the input-output plane looks like ____________ : (Choose the correct alternative)

If the average fixed cost of producing 4 units of output is < 60, then thevalue of total fixed cost for producing 5 units will be _____________ . (Fill up the blank)

OR

State any two examples of variable cost.

Explain briefly the central problem of ‘‘What to produce’’.