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.