Which of the Following Is an Assumption Under Which the Production

question 142

Multiple Choice

Which of the following is an assumption under which the production possibilities curve is drawn?

• A)Total unemployment is zero.
• B)The supply of resources is fixed.
• C)The price level is changing.
• D)Technology is changing.

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Definitions:

Direct Labour

The workforce directly involved in manufacturing goods or providing services, where their labor can be directly tied to end products.

Variable Manufacturing Overhead

Costs in the production process that vary with the level of output, such as utilities for the machinery.

Specialized Machine Cost

The acquisition and operational costs associated with machinery that is designed for specific, specialized tasks in production.

Direct Labour

Workers who are directly involved in the production of goods or services.