A Production Possibilities Curve Has an Outwardly-Bowed Shape Because of the

question 93

Multiple Choice

A production possibilities curve has an outwardly-bowed shape because of the

• A) scarcity problem.
• B) principle of increasing opportunity cost.
• C) cost-benefit principle.
• D) equilibrium principle.
• E) principle of comparative advantage.

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Definitions:

Common Shares

A type of equity security representing ownership in a corporation, entitling holders to dividends and voting rights, among other rights.

Non-controlling Interest

An interest in a corporation that is not held by the parent company, representing the share of equity owned by minority shareholders in the subsidiaries of a consolidated group.

Gross Profit

A company's revenue minus its cost of goods sold, reflecting the initial profit figure before deducting operating expenses, interest, and taxes.

Non-controlling Interest

A share in a subsidiary company not owned by the parent company, indicating the portion of equity interest that is not directly controlled by the parent company.