While moving along a production possibilities frontier,the amount of labor ________,the amount of capital ________,and the level of technology ________.
A) is fixed; is fixed; varies
B) varies; is fixed; varies
C) varies; is fixed; is fixed
D) is fixed; is fixed; is fixed
E) varies; varies; varies

Question

Quizplus · Accepted Answer

Moving along a production possibilities frontier (PPF) implies changing the allocation of resources between two goods or services, but the total amount of resources available and the technology level are constant. This means labor, capital, and technology levels do not change; only the distribution of these resources changes.

While Moving Along a Production Possibilities Frontier,the Amount of Labor