Which of the following sentences is/are true?

i. All isoclines are expansion paths but all expansion paths are not isoclines.

ii. Short-run production functions involve adjusting all inputs, including fixed inputs like land or capital, to affect output.

iii. Stock resources are the resources which are not used in one period of production but can be stored for a later period.

The correct answer is Only iii.

Key Points

• Stock resources refer to those resources that are available for use but are not consumed during a single period of production.
• These resources can be stored and utilized in future periods, ensuring availability over time.
• Examples of stock resources include raw materials like minerals, fossil fuels, and long-lasting tools and machinery.
• Stock resources are crucial for managing long-term production and ensuring sustainability in various industries.
• Proper management and storage of stock resources can help mitigate resource scarcity and maintain steady production levels.

Additional Information

• Isoclines and Expansion Paths
  • An isocline is a curve that represents combinations of inputs that yield the same level of output.
  • Expansion paths show the combination of inputs that minimize costs for different levels of output.
  • While all isoclines are considered expansion paths, not all expansion paths are isoclines.
• Short-run Production Functions
  • In the short run, some inputs, such as capital and land, are fixed and cannot be adjusted.
  • Production can be altered by changing variable inputs like labor and raw materials.
  • Adjusting fixed inputs is characteristic of long-run production functions, not short-run.
• Flow Resources
  • Flow resources are those that are used up in the process of production and cannot be stored for future use.
  • Examples include electricity, water, and labor.
  • These resources must be continuously available to maintain production.
• Sustainability in Resource Management
  • Sustainable resource management involves using resources in a way that meets current needs without compromising future availability.
  • Both stock and flow resources must be managed carefully to ensure long-term ecological and economic stability.
  • Strategies include recycling, efficient usage, and investing in renewable resources.