The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 51

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.If Country X is currently producing at point A,it could move to point B if

• A)the cost of producing capital goods were to increase.
• B)some resources were switched from the capital goods industries to the consumer goods industries.
• C)the cost of producing consumer goods were to increase.
• D)some resources were switched from the consumer goods industries to the capital goods industries.
• E)Country X is no longer able to produce the quantity of capital goods at point A.

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Definitions:

Unit Sales

The quantity of product sold by a company in a given period.

Unit Contribution Margin

Unit Contribution Margin is the difference between the selling price of a unit and the variable cost associated with making that unit, indicating how much each unit contributes to covering fixed costs and generating profit.

Advertising Budget

The amount of money allocated for promoting products, services, or a brand during a specific period.

Net Operating Income

A measure of a company's profitability that excludes interest and income tax expenses.