Asked by Jonathan Gibbons on Jun 30, 2024
Verified
When drawing a production possibilities frontier for two goods,all of the following are usually assumed except one.Which is the exception?
A) The quantity of resources is rapidly growing.
B) Technology is fixed.
C) Resources can be shifted from the production of one good to the other.
D) The production possibilities frontier is drawn for a particular time period.
E) Resources are fully and efficiently employed.
Quantity Of Resources
The total amount of natural, human, and capital resources available to produce goods and services.
Rapidly Growing
This term is used to describe entities (e.g., economies, companies) that experience a significantly higher-than-average increase in size, value, or performance over a short period.
- Acquire an understanding of the production possibilities frontier (PPF) and the assumptions on which it is based.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
A
Explanation :
The assumption of rapidly growing resources is not usually made when drawing a production possibilities frontier, as resources are usually considered to be scarce and limited.
Learning Objectives
- Acquire an understanding of the production possibilities frontier (PPF) and the assumptions on which it is based.