All of the Following Are Assumptions of the Production Possibilities

question 336

Multiple Choice

All of the following are assumptions of the production possibilities curve EXCEPT

• A) resources are fully employed.
• B) there is a fixed time period.
• C) there is a fixed level of technology.
• D) there is a fixed demand for the products.

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Definitions:

Income Elasticity

An indicator of the degree to which demand for a product or service shifts following a variation in consumer income.

Housing

The provision of accommodation, typically through buildings or structures where individuals or families live.

Income Increase

A rise in the amount of money earned by an individual or collected by an organization, often measured on a monthly or yearly basis.

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in price of another good, indicating the degree of substitutability or complementarity between the two goods.