Which of the following is true of the production possibilities curve?
A) It assumes a fixed level of technology.
B) It assumes that the prices of the products considered are equal.
C) It assumes some inefficiency will result in the use of resources.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

The production possibilities curve assumes a fixed level of technology, meaning that the amount and quality of resources available for production do not change. It does not assume that prices are equal or that inefficiency will result in the use of resources.

Which of the Following Is True of the Production Possibilities