Use the Figure Below to Answer the Following Questions

question 56

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.1.1
-Refer to the production possibilities frontier in Figure 2.1.1. Which one of the following is true about point A?

• A)It is unattainable.
• B)While no more of good Y can be produced, more of good X can be produced.
• C)It is preferred to point B.
• D)Resources are either unused or misallocated or both.
• E)It is attainable only if the amount of capital goods is increased.

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Definitions:

Market Value

The existing value at which a service or asset may be sold or bought within a market environment.

Worksheet

A tool used in accounting to compile all the financial statements and support in preparing closing entries.

Adjusting Entries

Financial entries drafted at the end of an accounting timeframe to accurately assign income and expenses to the period they were incurred.

Owner's Equity

This represents the owner's claims on the assets of the business, calculated as the difference between the total assets and total liabilities of the business.