Which of the following is not an assumption of the productions possibilities frontier?
A)A country produces only two goods or types of goods.
B)Technology does not change.
C)The amount of available resources does not change.
D)There is a fixed quantity of money.

Question

Quizplus · Accepted Answer

The assumption of a fixed quantity of money is not a factor in determining the production possibilities of a country. The other assumptions listed (two goods produced, no change in technology, and no change in available resources) are all factors that affect a country's production possibilities.

Which of the Following Is Not an Assumption of the Productions