The production possibilities frontier model assumes which of the ...

[crobinson2013]

The production possibilities frontier model assumes which of the following?
 
  A) Production of any level of the two products that the economy produces is currently possible.
  B) Labor, capital, land, and natural resources are unlimited in quantity.
  C) The economy produces only two products.
  D) The level of technology is variable.

Question 2

If most workers are risk adverse why do we still see many workers agreeing to contracts where their compensation is variable like commissions for magazine salesmen or car salesmen?
 
  What will be an ideal response?

[HandsomeMarc]

Answer to Question 1

C

Answer to Question 2

These types of contracts occur because variable compensation can help firms get better performance from their workforce.

[crobinson2013]

Thank you

[HandsomeMarc]

Happy to help you