The two basic assumptions of PPC are: (i) resources are given and are not fully and efficiently utilised, and (ii) there is no change in the technique of production. State True or False.

True

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False

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Solution

The correct option is B
False

An assumption of PPC is that resources are fully and efficiently used. Hence, the statement is false.

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Similar questions

Which of the following is an assumption of Production Possibility Frontier?
(i) Resources are not fully employed.
(ii) Resources are not equally efficient for production of the two goods.
(iii) Resources are not efficiently employed.
(iv) Resources available are not fixed.

Which of the following is an assumption of Production Possibility Frontier?

i) Resources are not fully employed.

ii) Resources are not equally efficient for production of the two goods.

iii) Resources are not efficiently employed.

iv) Resources available are not fixed.

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