Which of the Following Is Not True About Production Possibilities

question 87

Multiple Choice

Which of the following is not true about production possibilities frontiers?

• A) moving from one point to another on a PPF incurs a tradeoff
• B) economic growth is shown by shifting the PPF outward
• C) unemployment of resources is shown by shifting the PPF inward
• D) a PPF can shift inward or outward

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Definitions:

Cash Expense

Expenses that require immediate outlay of cash during an accounting period.

Depreciation

The reduction in the value of an asset over time, usually due to wear and tear or obsolescence.

Net Working Capital

The difference between a company's current assets and current liabilities, indicative of its short-term financial health and operational efficiency.

Operating Cash Flows

The cash generated from the normal operations of a business, reflecting its ability to generate sufficient revenue to maintain and grow operations.