When Drawing a Production Possibilities Frontier, All of the Following

question 140

Multiple Choice

When drawing a production possibilities frontier, 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 between production of the two goods.
• D)The production possibilities frontier is drawn for a particular time period.
• E)Resources are fully and efficiently employed.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product.

Inventory

Goods and materials held by a business for the purpose of resale or production.

Production Budget

A production budget is a financial plan that estimates the number of units to be produced to meet anticipated sales.