A Point Lying Inside the Production Possibilities Boundary Is One

question 99

Multiple Choice

A point lying inside the production possibilities boundary is one at which

• A)there is no scarcity.
• B)the opportunity cost of producing more output is negative.
• C)it is not possible to produce more output with existing resources.
• D)the economy has run out of resources.
• E)more output could be produced with existing resources.

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Definitions:

Interest Charge

The amount charged by a lender to a borrower for the use of borrowed money, typically expressed as an annual percentage of the principal.

Dishonor Of Note Receivable

Occurs when a promissory note's maker fails to make the scheduled payment to the note's holder when due.

Accounts Receivable

Amounts of money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Allowance For Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collectible due to credit sales.