Question

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

a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall.
b. Resources such as nonrenewable resources will decline, but labor remains fully employed, and technology is unchanged.
c. Resources can vary, most resources experience times of unemployment, and technology advances, particularly during wartime.
d. Resources such as labor and capital will grow, are fully employed, and technology is unchanged.
e. None of the above answers is correct.