The Following Production Possibilities Table Represents an Economy Which Is

question 191

Multiple Choice

The following production possibilities table represents an economy which is producing two products, tanks and autos.Refer to the table, in moving from possibility C to D, the cost of a tank in terms of autos is:

• A)50
• B)100
• C)200
• D)300

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Definitions:

Goodwill

An intangible asset representing the excess value of a purchased company over the fair value of its identifiable net assets.

Non-Controlling Interest

A share of equity ownership in a subsidiary or joint venture which is not large enough to exercise control over the entity.

Impairment Loss

A decrease in an asset's recoverable amount below its carrying amount, leading to a write-down of the asset's value on the balance sheet.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage; it measures the profitability of selling goods.