Question

A production possibilities curve is drawn based on which of the following assumptions?

a. Resources are fixed and fully employed, and technological advances at the rate of growth for the economy overall. 

b. Resources such as nonrenewable resources will decline, but labor remains fully employed, and technology is unchanged. 

c. Resources may vary; most resources experience times of unemployment; and technological advances, particularly during wartime. 

d. Resources such as labor and capital will grow and are fully employed, and technology is unchanged. 

e. None of the answers is correct.