Question

Match List-I with List-II
List-I (Content/concept):
(A) The percentage change in one factor, divided by the per cent change in the other factor
(B) Indicates the change in curvature of total physical product curve
(C) Each additional unit of input adds less to the total product than the previous unit did
(D) Slope of production possibility curve
List-II (Concept):
(I) Marginal rate of product substitution
(II) Elasticity of substitution
(III) Inflection point
(IV) Law of decreasing returns
Choose the correct answer from the options given below:

• (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (II), (C) - (IV), (D) - (I)
• (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

Hint:

The slope of a production curve represents a marginal rate. Since the Production Possibility Curve deals with outputs, its slope is the Marginal Rate of Product Substitution (D matches I).

Answer 1

The Correct Option is A