The Absolute Value of the Slope of the Production Possibilities

question 57

Multiple Choice

The absolute value of the slope of the production possibilities curve at any point:

• A) gives the price of the good on the vertical axis that must be given up to attain an additional unit of the good on the horizontal axis.
• B) is found by dividing the horizontal change by a vertical change.
• C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis.
• D) gives the price of the good on the horizontal axis relative to the price of the good on the vertical axis.

---

Definitions:

Equity Method

An accounting technique used to record investments in associated companies.

Fixed Assets

Long-term tangible assets used in a company's operations, such as buildings, machinery, and equipment, which are not typically sold in the course of business.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.