If a Country's Production Possibilities Boundary Is Drawn as a Straight

question 62

Multiple Choice

If a country's production possibilities boundary is drawn as a straight (downward-sloping) line it indicates

• A)decreasing opportunity cost of producing more of either good.
• B)the use of the scarce resources in an economy.
• C)constant opportunity cost of producing more of either good.
• D)an unfair distribution of resources in an economy.
• E)increasing opportunity cost of producing more of either good.

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Definitions:

Liabilities

Financial obligations or debts a company owes to others that must be paid in the future.

Assets

Resources owned by a business or individual that have economic value.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the United States.

IASB

The International Accounting Standards Board, an organization that establishes accounting standards known as International Financial Reporting Standards (IFRS) that guide the preparation and reporting of financial statements globally.