JAMB Economics 2011 Objective — Question 6

Question 6 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.

One of the limitations of PPC assumption is that there is

A. A. no recognition of preferred goods for countriesCorrect
B. B. technical inefficiency
C. C. abundant resources
D. D. no indication of technological development

Explanation

On a PPC, two goods are represented, but there is no indication for the one that is preferred out of the two goods. Technical progress or development is indicated with a shift of the curve to the right. Technical inefficiency can be shown with a point inside the PPC, which completely rules out abundance of resources.

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