Question

1. what assumption is made when drawing a ppc? government sets production quotas resources and technology are unlimited demand is always constant resources and technology are fixed

Explanation:

A Production - Possibility Curve (PPC) shows the different combinations of two goods that can be produced with given resources and technology. One of the key assumptions is that resources and technology are fixed in the short - run. If resources and technology were unlimited, there would be no trade - offs and no need for a PPC. The government setting production quotas is not an assumption for drawing a PPC. Demand is not assumed to be constant in the context of drawing a PPC.

Answer:

D. Resources and technology are fixed