Analyzing Production Possibilities

Tick 3 correct boxes. - PPC is based on assumptions

• Resources are fixed

• All resources are fully employed

• Only two things can be produced

• Technology is not fixed

It involves producing the maximum amount of goods and services

• Efficiency

• Under-utilization

Means producing fewer goods and services than possible

• Efficiency

• Under-utilization

The PPC is based on __________________

• Facts

• Assumptions

• Time

Explain the term economic model