All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed.
B) there is a fixed time period.
C) there is a fixed level of technology.
D) there is a fixed demand for the products.

Question

Quizplus · Accepted Answer

The production possibilities curve assumes that resources are fully employed, there is a fixed time period, and there is a fixed level of technology. However, it does not assume a fixed demand for the products. In fact, the production possibilities curve can be used to explore how changes in demand might affect a country's production possibilities.

All of the Following Are Assumptions of the Production Possibilities