Author Question: One of the assumptions underlying the production possibilities curve for any given economy is that: ... (Read 37 times)

mwit1967 · **on:** Jun 30, 2018

One of the assumptions underlying the production possibilities curve for any given economy is that:
a. the state of technology changes.
b. there is an unlimited supply of resources.
c. there is full employment of resources when the economy is on the curve.
d. goods can be produced outside the curve.

Question 2

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located:
a. at the top corner of the curve.
b. near the middle of the curve.
c. at the bottom corner of the curve.
d. outside the curve.
e. inside the curve.