1.

Which of these is not an assumption of PPC?

Answer»

RESOURCES are FULLY and EFFICIENTLY utilised
Resources in the economy are fixed
There is no change in level of technology
Resources are equally efficient in production of all products

Solution :D. The FOUR key 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.


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