Refer to the Following Production Possibilities Curves

question 247

Multiple Choice

Refer to the following production possibilities curves.Curve (a) is the current curve for the economy.Given production possibilities curve (a) , the combination of capital and consumer goods indicated by point L:

• A)would entail substantial unemployment.
• B)would entail an inefficient use of society's resources.
• C)is beyond the productive capacity of this society.
• D)suggests the productive capacity of the system is declining.

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Definitions:

Other Comprehensive Income

Earnings that are not part of net income, consisting of items such as unrealized gains and losses on certain investments.

Retained Earnings

The portion of net income that is retained by the corporation instead of being paid out as dividends to shareholders.

Earnings Management

The practice of using accounting techniques to produce financial reports that may paint an overly positive picture of a company's business activities and financial position.

Investment Account

A financial account held at a financial institution that contains securities, cash, and other assets managed for the purpose of achieving an investment goal.