Any Point Inside the Production Possibilities Curve Indicates

question 133

Multiple Choice

Any point inside the production possibilities curve indicates:

• A)the realization of allocative efficiency.
• B)that resources are imperfectly shiftable among alternative uses.
• C)the presence of inflationary pressures.
• D)that more output could be produced with available resources.

---

Definitions:

Percent of Sales Method

A financial forecasting model that predicts future variables, such as expenses and inventory levels, as a percentage of projected sales.

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.

Bad Debt Expense

An expense reported by businesses to account for receivables that are no longer collectible, affecting the net income.

Allowance for Doubtful Accounts

A contra-asset account on the balance sheet, estimating the amount of receivables that are expected to be uncollectible.