Consider a Production Possibilities Boundary Showing the Quantity of Military

question 77

Multiple Choice

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes.A movement along the production possibilities boundary could be caused by

• A)the employment of previously idle resources.
• B)the reallocation of resources between military and civilian goods.
• C)the growth of productive capacity.
• D)an increase in the labour supply.
• E)technological progress.

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Definitions:

Conceptual Framework

A theoretical structure that outlines the objectives and fundamentals of financial reporting to guide the development of accounting standards.

Income

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

Gains

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liabilities that result in increases in equity, other than those related to contributions from equity participants.

Significant Risks

Major threats or uncertainties that could potentially impact an entity's operations, financial performance, or reputation significantly.