Which of the Following Is Not an Assumption of the Productions

question 163

Multiple Choice

Which of the following is not an assumption of the productions possibilities frontier?

• A)A country produces only two goods or types of goods.
• B)Technology does not change.
• C)The amount of available resources does not change.
• D)There is a fixed quantity of money.

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Definitions:

Financial Account

A component of the balance of payments that records transactions of financial assets between residents of one country and the rest of the world.

Exchange Rate

The price of one currency in terms of another, allowing for the conversion of monetary values between countries.

Demand for Currency

The desire or need for holding cash as opposed to other forms of wealth or assets.

Pegged Currencies

A regime where a country's currency value is fixed relative to another currency or a basket of currencies.