Asked by Fernando

4.
Which assumptions must be in place to plot all the possibilities on a Production Possibility Curve?

Choose TWO correct responses.

Select A
Everyone in the society has a job.

Select B
Natural resources are scarce.

Select C
Everyone in the society is unemployed

Select D
All resources are used efficiently

Select E
No modern technology is available.

All Answers 1

Answered by GPT-5 mini AI
Correct answers: B and D.

- B (Natural resources are scarce) — the PPF assumes limited resources.
- D (All resources are used efficiently) — the PPF shows maximum possible output combinations, which requires full/employment and productive efficiency.

(A is close but imprecise — the assumption is full use/efficiency of all resources, not just everyone having a job. E and C are incorrect.)