ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The economy is operating in full employment and full production capacity (full efficiency)
|
|
|
The amount of resources available are fixed.
|
|
|
The state of technology does not change throughout the production.
|
|
|
None of above
|
Detailed explanation-1: -Answer. Answer: b. Resource in the economy are fixed .
Detailed explanation-2: -The PPC is based on assumptions that resources are fixed, all resources are fully employed, only two things can be produced, and technology is fixed.
Detailed explanation-3: -Characteristics of Production Possibility Curve From left to right, the PPC curves downward. The production must be decreased to enhance one commodity’s output or a mix of products. An increase in marginal transformation causes the PPC to be concave to the graph’s beginning.
Detailed explanation-4: -The resources are given and remain constant. The technology used in the production process remains constant. The resources and technology are fully and efficiently utilized. The technique of production remains constant.