Refer to the Diagram Below

question 146

Multiple Choice

Refer to the diagram below.This production possibilities curve is constructed such that:

• A)resources are presumed to be perfectly shiftable between bread and tractors.
• B)the opportunity cost of bread diminishes as more bread is produced.
• C)the opportunity cost of tractors diminishes as more bread is produced.
• D)the opportunity cost of both bread and tractors in terms of each other increases as more of each is produced.

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Definitions:

Capital

The wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.

Fair Value

Fair Value is the estimated market value of an asset or liability, reflecting the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Equipment

Tangible property that is used in the operations of a business, not intended for sale.

Cash

Currency and other liquid instruments that a company possesses, readily available for transactions.