Compared to Production Possibilities Curves Without Trade, Those with Trade

question 74

Multiple Choice

Compared to production possibilities curves without trade, those with trade are

• A)the same but with a different slope.
• B)shifted inward.
• C)sometimes shifted outward and sometimes shifted inward.
• D)shifted outward.
• E)the same.

---

Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, recorded in the cash flow statement.

Cash Dividends

Profits distributed by a corporation to its shareholders in the form of cash.

Cash Equivalent

Short-term, highly liquid investments easily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value.

Liquid

Describes an asset's ability to be quickly converted into cash without significant loss in value.