Question

Which of the following is an assumption of Production Possibility Curve?

Select one:
A. Resources are not efficiently employed
B. Resources are not fully employed
C. Resources available are not fixed
D. Recourses are not equally efficient for the production of the two goods
E. Resources are not important

Answer 1

Answer:

ADVERTISEMENTS: The production possibility curve is based on the following Assumptions: (1) Only two goods X (consumer goods) and Y (capital goods) are produced in different proportions in the economy. (2) The same resources can be used to produce either or both of the two goods and can be shifted freely between them.

Answer 2

D. Resources are not equally efficient for the production of the two goods

Explanation:

• The assumption about the PPF is that the resources have only two factors that are x and y which are produced in different proportions of the economy.

• The same-resources can be made to produce both foods that can be shifted. The supply factors are fixed but can be relocated. The production techniques are regiven and constant.

• The time period is short. The resources are not equally efficient for production as an increase in one leads to a decrease in productivity of another

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• brainly.in/question/18060482 answered by  gaythrig940.