The Relationship Between Factors of Production Used in the Production

question 38

Multiple Choice

The relationship between factors of production used in the production process and the resulting output is called a(n)

• A)production boundary.
• B)production function.
• C)economic function.
• D)cost function.
• E)consumption possibilities boundary.

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Definitions:

Long-Term Investments

Assets that a company intends to hold for more than a year, such as stocks, bonds, or real estate.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted into cash within one year, such as buildings, machinery, and equipment.

Long-Term Liabilities

Liabilities that will not be due for a long time (usually more than one year).

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.