In Figure 1

question 82

Multiple Choice

In Figure 1.3,a shift of the production possibilities curve from PP1 to PP2 could be caused by

• A)A decrease in the quantity of raw materials available.
• B)A decline in the production skills of workers.
• C)The use of improved production technology.
• D)All of the choices are correct.

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically useful to an organization.

Capitalized

Refers to recording an expense or cost as an asset on the balance sheet, rather than as an expense on the income statement, to spread out the expense over its useful life.

Long-Lived Assets

These are tangible or intangible assets that a company expects to use for more than one year, including property, plant, and equipment.

Economic Benefits

The gains derived from actions or decisions, typically measured in terms of revenue or income generated or costs saved.