When Drawing a Production Possibilities Frontier for Two Goods,all of the Following

question 64

Multiple Choice

When drawing a production possibilities frontier for two goods,all of the following are usually assumed except one.Which is the exception?

• A)The quantity of resources is rapidly growing.
• B)Technology is fixed.
• C)Resources can be shifted from the production of one good to the other.
• D)The production possibilities frontier is drawn for a particular time period.
• E)Resources are fully and efficiently employed.

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Definitions:

Independent Events

Two events that have no influence on each other's occurrence, meaning the probability of one does not affect the other.

P(A And B)

The probability that events A and B both occur, which can be calculated directly or via the multiplication rule for independent events.

P(B|A)

The likelihood of event B happening after event A has already taken place.

Complement

The set or amount that completes something to a whole, usually in the context of sets in mathematics or the complement rule in probability.