Which of the Following Is NOT an Assumption That Economists

question 36

Multiple Choice

Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF) ?

• A) We live in a world with only two goods.
• B) There are no increases in technology.
• C) There is no change in available resources.
• D) Society will always be producing somewhere on the PPF.
• E) There are no decreases in technology.

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Definitions:

Central Limit Theorem

A statistical theory that states the distribution of the sample mean of a large enough number of independent, identically distributed variables will be approximately normal, regardless of the population's distribution.

Sample Means

The average value of a sample, which is a subset of a larger population, used to estimate the population mean.

Normally Distributed

A statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Standard Deviation

An indicator of the degree to which a dataset's values vary or are spread, showing the distance of the values from the average.