Question

Which of the followng is an assuming of Production Possibility Frontier?
A. Resources are not fully employed.
B. Resources are not equally effcient for production of the two goods.
C. Resources are not efficiently employed.
D. Resources available are not fixed.

Answer 1

Correct Answer - B
B. Resources are not equally efficient for all type of goods (to increase production of one unit of good 1 we have to sacrifice more and more( 2,3,4,5,) units of good 2)