When Constructing a Production Possibilities Frontier, Which of the Following

question 127

Multiple Choice

When constructing a production possibilities frontier, which of the following assumptions is not made?

• A)The economy produces only two goods or two types of goods.
• B)Firms produce goods using factors of production.
• C)Technology does not change.
• D)The quantities of the factors of production that are available are increasing over the relevant time period.

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Definitions:

Brightness Contrast

The appearance of a differently illuminated areas in the field of vision, resulting in the perception of varying levels of light intensity.

Lateral Inhibition

A neurological process where the firing rate of a neuron is decreased due to the activity of neighboring neurons, enhancing contrast in sensory perception.

Physiological Process

a biological function or activity in living organisms that is necessary for maintaining life, such as breathing, digestion, or nerve function.

Color Blindness

A visual impairment where one is unable to distinguish certain shades of color due to deficiency in the eyes' color-detecting molecules.