In the Production Possibilities Frontier Model, an Unattainable Point Lies

question 21

Multiple Choice

In the production possibilities frontier model, an unattainable point lies

• A) only outside the production possibilities frontier.
• B) both on and outside the production possibilities frontier.
• C) only on the production possibilities frontier itself.
• D) only inside the production possibilities frontier.
• E) There are no unattainable points in the production possibilities model.

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Definitions:

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.

Interest Expense

The financial charge an organization incurs over time for borrowing funds.

Note Payable

A written promissory note wherein the borrower agrees to pay back the lender on demand or at a predetermined future date, along with interest.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, investment activities, and financing, as well as all cash outflows that pay for business activities and investments during a given period.