Question

what are assumption of ppc?​

Answer 1

Answer:

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.

Answer 2

Assumption of PPC:-

1. Limited resources in economy.

2. Don't change in technique of production.

3. Economy at a full employment level.

4. Only two goods are produced by resources.

Extra information:

Shift of PPC: PPC shifts to right ward when resources of economic grow and when new technology is available there.

So, right ward shift of PPC indicates the growth of resources.