What Are Project Assumptions

question 39

Multiple Choice

What are project assumptions?

• A) Specific factors that can limit options.
• B) Factors that are considered to be true, real, or certain without proof or demonstration.
• C) Quantifiable criteria that must be met for the project to be considered a success.
• D) A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF demonstrates the trade-offs in production volume between two choices.

Opportunity Cost

The cost of passing up the next best choice when making a decision.

Economic Problem

The challenge of managing limited resources to meet the unlimited wants and needs of a society.

Scarce Resources

Essential goods or inputs in limited supply compared to the demand, requiring allocation through economic systems.