The Fact That Resources Are Not Equally Productive in All

question 141

Multiple Choice

The fact that resources are not equally productive in all activities

• A)implies that gains from specialization and trade are unlikely.
• B)implies a linear production possibilities frontier.
• C)follows from the law of demand.
• D)implies that an economy should not produce certain goods.
• E)implies that a production possibilities frontier will be bowed outward.

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Definitions:

Initial Value Method

A financial recording method where the purchase price of an investment is its only recorded value, without adjustments over time.

Consolidated Net Income

Consolidated net income is the combined net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated, presenting a comprehensive net income figure for the entire corporate group.

Subsidiary's Equipment

Assets like machinery and tools owned by a subsidiary, which is a company controlled by another parent company.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries, presenting the financial results as if the group of companies was a single entity.