Increases in Resources or Improvements in Technology Will Cause the Production

question 103

Multiple Choice

Increases in resources or improvements in technology will cause the production possibilities frontier to

• A)shift outward
• B)shift inward
• C)become a straight line
• D)become horizontal
• E)become vertical

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Definitions:

Deferred Gross Profit

The portion of gross profit that is not recognized in the current period due to installment sales or revenue recognition policies.

Installment Sales

The method of recognizing revenue where the payment is received over a period of time in installments, often used in real estate and high-priced consumer goods transactions.

Deduction

An expense that can be subtracted from gross income to reduce the amount of income subject to tax.

Revenue

The total income generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.