|
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.
|