Which one of the following must be held constant in drawing up a production-possibility frontier?
A)The total resources.
B)The quantity of money.
C)Money income.
D)Prices.
E)The allocation of resources among alternate uses.

Question

Quizplus · Accepted Answer

The production-possibility frontier (PPF) is a graphical representation of the possible combinations of two goods or services that an economy can produce given fixed resources. Therefore, the total resources must be held constant to accurately depict the trade-offs and opportunity costs associated with producing different combinations of goods.

Which One of the Following Must Be Held Constant in Drawing