IntroductionClass 12 Introductory Microeconomics Assertion & Reason Questions

Assertion (A): The fundamental economic problem faced by every society is the problem of choice.

Reason (R): Human wants are unlimited, but the resources to satisfy them are scarce and have alternative uses.

Assertion (A): A point lying strictly inside the Production Possibility Frontier (PPF) indicates inefficient or under-utilisation of resources.

Reason (R): The Production Possibility Frontier represents the combinations of goods produced with the full and efficient utilisation of available resources.

Assertion (A): In a market economy, the central problem of 'what to produce' is resolved by the government.

Reason (R): A market economy is one where economic activities are organized through the free interaction of individuals and the price mechanism.