Which of the Following Is an Assumption Used When Drawing

question 218

Multiple Choice

Which of the following is an assumption used when drawing a production possibilities frontier?
i.Human wants and desires are limited to what is available.
ii.Only two goods are considered.
iii.The level of technology is fixed and unchanging.

• A) i only
• B) ii only
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Legislative Variations

Differences in laws and regulations across different jurisdictions or over time within the same jurisdiction.

Tax Policies

The set of laws and regulations that determine how taxes are collected, managed, and utilized by the government.

Multiplier

In economics, a factor that quantifies how an initial change in one economic variable (such as investment) will affect changes in other variables, like total output.

MPC

Marginal Propensity to Consume, a measure that describes the proportion of an increase in income that gets spent on consumption rather than being saved.