Use the Following Figure to Answer Questions: Figure 1

question 4

Multiple Choice

Use the following figure to answer questions: Figure 1.4 1
-In Figure 1.4,a shift of the production possibilities curve from PP1 to PP2 could be caused by

• A)An increase in the unemployment rate.
• B)Implementation of training programs that improve the skills of workers.
• C)A flu epidemic that makes many workers sick.
• D)Tougher pollution controls for the producers of plasma televisions and MP3 players.

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Definitions:

Selling and Administrative Expenses

Expenses related to the daily operations of a business that are not directly tied to production, including sales promotions, salaries of administrative staff, and office rent.

Days' Sales

A measure often used in the context of 'Days' Sales in Inventory' which indicates the average number of days it takes for a company to sell its inventory.

Raw Materials Inventory

Consists of the basic materials and components required to manufacture goods.

Production

The process of creating, manufacturing, or enhancing products or services for sale.