The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 99

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1-4
-Refer to Figure 1-4.If Country X were producing at point C,

• A)the opportunity cost of moving to point B is to give up some consumption goods.
• B)the opportunity cost of moving to point A is zero.
• C)the opportunity cost of moving to point A is to give up some capital goods.
• D)this is the maximum output possible from given resources.
• E)it is not possible to move to any point on PPB1 or PPB2 without technological progress.

---

Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect those that are expected to go uncollected.

Uncollectible

Accounts receivable that cannot be recovered or are very unlikely to be paid by debtors.

Income Statement Approach

An analytic method focusing on revenues and expenses to determine the net income of a business within a specific period.

Net Credit Sales

The total revenue from sales made on credit, minus any returns or allowances.