The Production Possibilities Frontier of an Economy Is Based on the Assumption

Multiple Choice

The production possibilities frontier of an economy is based on the assumption that the _____

A) amount of consumer goods produced in the economy is constant during a given year.
B) quality of labor available in the economy is variable during a given year.
C) patent laws applicable in the economy are constant during a given year.
D) level of technology available in the economy is variable during a given year.
E) economy can produce either capital goods or consumer goods during a given year.