Question

Which of these is not an assumption of PPC?

Options

• Resources are fully and efficiently utilised

• Resources in the economy are fixed

• There is no change in level of technology

• Resources are equally efficient in production of all products

Answer 1

Resources are equally efficient in production of all products

Explanation:

PPC assumes resources are fixed, fully and efficiently used, and technology is constant. It does not assume resources are equally efficient in producing all goods; in fact, it assumes the opposite.