Which of the following is an assumption under which the current production possibilities curve is drawn?
The production possibility curve is based on the following Assumptions: (1) Only two goods X (consumer goods) and Y (capital goods) are produced in different proportions in the economy. (2) The same resources can be used to produce either or both of the two goods and can be shifted freely between them.
Which is an assumption of the production possibilities model?
We can use the production possibilities model to examine choices in the production of goods and services. In applying the model, we assume that the economy can produce two goods, and we assume that technology and the factors of production available to the economy remain unchanged.
What are the 4 assumptions of PPC?
Terms in this set (4)
- Number 1. Only two goods can be produced.
- Number 2. Full employment of Resources.
- Number 3. Fixed Resources (ceteris pluribus)
- Number 4. Fixed Technology.
Which of the following assumptions is required for a production possibilities curve to be a straight line?
Which of the following assumptions is required for a production possibilities curve to be a straight line? Resources are equally adaptable to the production of both goods in a country.
Which is not the assumption of production possibility curve?
The correct answer is (e). Pricing is not an assumption of the PPF.
Which of the following is true of the production possibilities curve quizlet?
Which of the following is true of a production possibilities curve? It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
Which of the following is the assumption for production possibilities frontier quizlet?
Which of the following is an assumption of the study of an economy's production possibilities? Output is limited to just two broad classes of products: consumer goods and capital goods.
Which one of the following is not an assumption underlying the production possibility curve?
The correct answer is (e). Pricing is not an assumption of the PPF.
What are the assumptions of production?
The first assumption is that the manager wants to produce the quantity of output that will maximize profit. A second assumption is that the business can increase production or output by using more input, and that increased output means increased profit.
Which of the following is an assumption made while constructing a production possibilities frontier PPF )?
The correct answer is c. The quantities of the factors of production that are available are increasing over the relevant time period.
On what assumptions is the PPC based explain how these conditions?
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.
What are the assumptions of production function?
Assumptions of production function are as follow: Production function is related to a specific time period. The state of technology is fixed during this period of time. The factors of production are divisible into the most viable units. There are only two factors of production, labour and capital.
What are the assumptions of PPC Class 11?
The assumptions of Production Possibility Curve (PPC) are:
- The amount of resources are fixed in an economy. …
- The level of technology used is constant.
- The resources are fully and efficiently utilised.
- With the amount of resources in hand, only two goods can be produced.
Which of the following is correct about the production possibilities curve?
The correct answer is c) An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
Which of the following is true about the production possibilities curve when a technological?
Which of the following is true about the production possibilities curve when a technological progress occurs? The curve: shifts outward to the right.
Which of the following is an assumption made while constructing a production possibilities frontier PPF?
The correct answer is c. The quantities of the factors of production that are available are increasing over the relevant time period.
Which of the following is a correct statement about the production possibilities frontier?
The correct answer is c) An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
Which of the following is not an assumption that economists make when developing a production possibilities frontier?
Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)? Society will always be producing somewhere on the PPF. Given the same quantity of resources, what is Solange's opportunity cost of producing a New York pizza?
Which of the following is the assumption of the production function?
The correct answer was: b. Both inputs and outputs are measured in monetary units..
Which of the following is not an assumption of a production possibilities curve?
Pricing is not an assumption of the PPF.
What assumptions do you make about the use of available resources when drawing a PPC?
2. What assumptions do you make about the use of available resources when drawing a PPC? When we are on a PPC, resources are fully employed and are being used in the most efficient way given the current state of technology.
What are the 3 assumption of production theory?
Embedded in these topics are secondary discussions about 1) short-run versus long-run, 2) fixed inputs and variable inputs, and 3) fixed costs and variable costs.
What are the assumptions of production function Mcq?
The following are the assumptions of production function : The costs of means of production should remain the same. Production function is related to a definite time period. The means of production should be divisible. The most efficient techniques of production should be employed.
Which of the following is not an assumption of production possibility curve?
The correct answer is (e). Pricing is not an assumption of the PPF.
Which of the following is assumed to be constant when drawing an economy’s production possibilities curve?
Answer and Explanation: PPF assumes to held constant the resources, which are production factors and the state of technology.
What is the production possibilities curve quizlet?
production possibilities curve. a graph or economic model that shows the maximum combinations of goods and services, any two categories of goods, that can be produced from a fixed amount of resources.
What does the production possibility curve illustrate?
The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.
What do you mean by production possibility curve?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
Which of the following is not true about production possibilities frontiers?
Which of the following is NOT true of the production possibilities frontier (PPF)? Points between the PPF curve and the X and Y axes are not attainable.
Which of the following is not the assumption of production possibility curve?
The correct answer is (e). Pricing is not an assumption of the PPF.