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Q.

Which of the following assumptions are involved in the theory of Production Possibility Frontiers (PPF)
I.   A Economy wants to produce two products
II.  There are limited Resources
III. Technology and techniques remain constant
IV.  All resources are fully used

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a

I, II, III and IV

b

I and IV only

c

I, II and III

d

II, III and IV

answer is D.

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Detailed Solution

PPF depends on assumptions, all resource are fully utilized etc

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