Answer to Question #75062 in Macroeconomics for jonathan

Question

What assumptions need to be taken into consideration when drawing a PPF curve?

Answer 1

The four key assumptions underlying production possibilities analysis are: (1) resources are used to produce one or both of only two goods, (2) the quantities of the resources do not change, (3) technology and production techniques do not change, and (4) resources are used in a technically efficient way.
Source:
https://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=assumptions,+production+possibilities