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:

Common Law

A legal system based on customs, traditions, and judicial decisions or precedents, rather than on codified written laws.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Adequacy of Consideration

An evaluation of whether the value exchanged between parties in a contract is reasonably fair at the time of the agreement.

Bargained-for Exchange

An essential principle of contract law involving the mutual exchange of promises or consideration between parties entering an agreement.