section 3 - questions\n34. what are the four assumptions for the production possibilities curve (ppc)…

Brief Explanations:

1. Fixed resources: Resources like land, labor, and capital are assumed to be fixed in quantity over the period considered. This allows us to analyze the trade - offs between different goods produced with these available resources.
2. Fixed technology: The level of technology is assumed not to change during the time frame of the analysis. If technology were to improve, the PPC would shift outward. By keeping it constant, we focus on the production choices within the existing technological capabilities.
3. Full employment: All resources are assumed to be fully and efficiently employed. There is no unemployment of labor or under - utilization of capital. This gives us the maximum possible production combinations.
4. Two - good model: The PPC is usually drawn for the production of two goods or two groups of goods. This simplifies the analysis of production choices and opportunity costs. In reality, an economy produces a vast number of goods, but the two - good model helps in understanding the basic principles of production trade - offs.

Answer:

1. Fixed resources: Quantity of resources is constant.
2. Fixed technology: No technological change during analysis.
3. Full employment: All resources are fully and efficiently used.
4. Two - good model: Simplifies analysis with two goods or groups of goods.