A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

Question

Quizplus · Accepted Answer

Production possibilities curves reflect the combination of resources available and the technology being used in production. The differences between the production possibilities curves of two nations are mainly due to differences in their resource availability and technological capabilities. Therefore, choice B is the best answer. Choices A, C, and D do not directly affect the production possibilities curves.

A Basic Assumption in Comparing the Production Possibilities Curves of Two