The Production Possibilities Boundary Shows Possible Combinations of Guns and Butter

question 98

Multiple Choice

The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country. The lower diagram shows demand and supply for butter. FIGURE 12- 2
-Refer to Figure 12- 2. Suppose this economy is allocatively efficient at Q1 units of butter. Now suppose there is an increase in demand for butter from D to D1. After this shift in demand,

• A) the price of guns (relative to the price of butter) rises and the economy moves to point (a) on the PPB.
• B) the marginal value to consumers of butter is greater than the marginal cost to producers; the price of butter (relative to the price of guns) rises; the economy moves to output Q2 of butter and point (c) on the PPB.
• C) the supply curve will shift up to S1 and allocative efficiency will be maintained.
• D) the marginal value to consumers of butter is less than the marginal cost to producers; the price of butter (relative to the price of guns) rises; the economy moves to output Q2 of butter and point (c) on the PPB.
• E) the increase in the price of butter (relative to the price of guns) will cause the demand curve to shift back down to D and allocative efficiency will be maintained.

Identify cultural and sociodemographic factors influencing family behavior and health practices.

Understand the effects of broader social issues, like homelessness, on family health.

Recognize signs of caregiver stress and its implications for family health.

Understand the different approaches to psychology (humanistic, behavioral, psychodynamic, cognitive, and sociocultural).

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Definitions:

Internal Control

A process implemented by a company to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Voucher System

An accounting system that involves the process of creating, approving, and documenting all purchases made by the company through vouchers.

Voucher Register

A comprehensive log that records details of all vouchers issued, including payment information, for accounting and auditing purposes.

Check Register

A record of checks written, deposits made, and balances in a checking account, used for tracking financial transactions.