Which assumption is made when drawing a PPC?

Prices of the two goods are equalCorrect answerYour answerResources and technology are given and fixedCorrect answerYour answerOnly one good is producedCorrect answerYour answerSome resources are always unemployedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A PPC is drawn for a given stock of resources and a given state of technology, with both goods produced.
It also assumes the resources are fully and efficiently employed.

Concept: Assumptions of the PPC
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe production possibility curve

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Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

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Which assumption is made when drawing a PPC?

Explanation