Which of the following is assumed in constructing a typical production possibilities curve?
A)the economy is using its resources inefficiently.
B)resources are perfectly shiftable among alternative uses.
C)production technology is fixed.
D)the economy is engaging in international trade.

Question

Quizplus · Accepted Answer

A typical production possibilities curve assumes that production technology is fixed, meaning that the methods and processes for producing goods do not change. This allows the curve to illustrate the trade-offs and opportunity costs of allocating resources between different goods.

Which of the Following Is Assumed in Constructing a Typical