On a Diagram of a Production Possibilities Boundary,the Concept of Scarcity

question 109

Multiple Choice

On a diagram of a production possibilities boundary,the concept of scarcity is illustrated by the

• A)points on the boundary.
• B)area within the boundary.
• C)distance from the origin to the boundary.
• D)negative slope of the boundary.
• E)unattainable points outside the boundary.

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Definitions:

Current Assets

Assets that can be converted into cash or used within one year or the normal operating cycle of the business, whichever is longer.

Common-Size Statements

Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.