-Which of the following is an assumption used when drawing a production possibilities frontier? i. Human wants and desires are limited to what is available.
Ii) Only two goods are considered.
Iii) The level of technology is fixed and unchanging.
A) i only
B) ii only
C) i and iii
D) ii and iii
E) i, ii, and iii

Question

-Which of the following is an assumption used when drawing a production possibilities frontier? i. Human wants and desires are limited to what is available.
Ii) Only two goods are considered.
Iii) The level of technology is fixed and unchanging.
A) i only 
B) ii only 
C) i and iii 
D) ii and iii 
E) i, ii, and iii

Quizplus · Accepted Answer

The production possibilities frontier (PPF) assumes that only two goods are considered and that the level of technology is fixed and unchanging. It does not assume that human wants are limited to what is available.

-Which of the Following Is an Assumption Used When Drawing