Asked by
chloe ambersine alvarado
on Oct 09, 2024
Verified
Which of the following is assumed in constructing a typical production possibilities curve?
A) The economy is using its resources inefficiently.
B) Resources are perfectly shiftable among alternative uses.
C) Production technology is fixed.
D) The economy is engaging in international trade.
Production Possibilities Curve
A graphical representation that shows the maximum quantity of goods and services that a society can produce, given its current technology and resources.
Production Technology
Refers to the methods and processes used in the production of goods and services.
- Familiarize oneself with the primary concept of a production possibilities curve and its relevance for economic activity and operational efficiency.
- Unravel the dynamics of increasing opportunity costs indicated by the production possibilities frontier's design.
Verified Answer
SC
Learning Objectives
- Familiarize oneself with the primary concept of a production possibilities curve and its relevance for economic activity and operational efficiency.
- Unravel the dynamics of increasing opportunity costs indicated by the production possibilities frontier's design.