Which of the following is an assumption of Production Possibility Fron

1.	Which of the following is an assumption of Production Possibility Frontier?
Answer» RESOURCES are not fully employed Resources are not fully efficient for production of two goods. Resources are not efficiently employed. Resources available are not fixed. Solution :assumptions underlying production possibilities analysis are: (1) resources are used to PRODUCE one or both of only two goods, (2) the quantities of the resources do not change, (3) technology and production TECHNIQUES do not change, and (4) resources are used in a TECHNICALLY efficient way.

Discussion