The Production Possibilities Curve Illustrates Which Two of the Following

question 89

Multiple Choice

The production possibilities curve illustrates which two of the following essential principles?

• A)Factors of production and price signals.
• B)Scarce resources and opportunity cost.
• C)Market mechanisms and laissez faire.
• D)Economic growth and market failure.

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Definitions:

Company's Own Stock

Shares that were issued and have been repurchased by the company itself, reducing the amount of outstanding stock on the open market.

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of an entity, as shown in its cash flow statement.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

FASB's Agenda

The Financial Accounting Standards Board's schedule of planned topics to discuss, with the aim of setting and improving accounting standards in the United States.