The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 135

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.A shift of the production possibilities boundary from PPB₁ to PPB₂ implies

• A)a movement from full employment to some unemployment.
• B)that if point E is the new choice of outputs,productivity has increased in the consumer goods industry.
• C)that productive capacity in the capital goods industries has improved.
• D)an inevitable decrease in total output.
• E)that productive capacity in the consumer goods industry has improved.

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Definitions:

Customers Served

The total number of unique customers who receive services or products from a business during a specific period.

Budgeting Formulas

Mathematical expressions or rules used to plan and control income and expenditure over a specified period.

Actual Results

Refers to the real, achieved outcomes of financial and operational activities within a specific period.

Cost Drivers

Factors that cause the cost of a product or service to change, such as materials, labor, and overhead expenses.