Consider a Production Possibilities Boundary Showing the Possible Combinations of Military

question 95

Multiple Choice

Consider a production possibilities boundary showing the possible combinations of military goods and civilian goods that a country can produce.Suppose that the country is currently at a point on the boundary.If the production of military goods is increased,the production of civilian goods will necessarily

• A)decrease.
• B)remain the same.
• C)increase.
• D)increase at a decreasing rate.
• E)increase at a increasing rate.

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Definitions:

Purchase Cost

The total expense incurred to acquire an asset, including the purchase price and associated costs.

360-Day Year

A financial convention or simplification to treat all months as 30 days in duration for the ease of interest calculations and financial analysis.

Commission

A fee or percentage of a sale paid to an employee or agent for facilitating or completing a sale.

Semiannually

Happening semiannually; every six months.