Use the Following to Answer Question

question 38

Multiple Choice

Use the following to answer question:

-(Figure: Production Possibilities and Circular-Flow Diagram) Use Figure: Production Possibilities and Circular-Flow Diagram.Assume the two figures represent the same economy.Suppose that in the circular-flow diagram most firms undergo a significant increase in productivity.This results in a significant increase in the output of both coconuts and fish.If all other variables remain unchanged,then the adjustment in this economy would be BEST represented in the production possibilities figure by a movement from point A toward:

• A)point A (no movement).
• B)point B (a decrease in coconut production and an increase in fish production).
• C)point C (a decrease in coconut production).
• D)point D (an outward shift of the entire curve).

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Definitions:

Bill Paid

An event where an obligation, often recorded as an accounts payable, is settled by paying the outstanding amount.

Accounts Receivable

Customer indebtedness to a company for the provision of goods or services that remain unpaid.

Partial Payment

Partial payment is a payment that is made towards a debt or invoice that is less than the full amount due at the time of payment.