Consider the Production Possibilities Boundary (PPB)of an Economy

question 19

Multiple Choice

Consider the production possibilities boundary (PPB) of an economy. Economic growth is illustrated by

• A)a movement onto the PPB.
• B)an outward shift of the PPB.
• C)a movement along the PPB.
• D)the negative slope of the PPB.
• E)the movement to a point outside of the PPB.

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Definitions:

Current-Year Net Income

Current-Year Net Income is the total profit or earnings of a company for the ongoing fiscal year, after subtracting all expenses, taxes, and costs.

Accrued Salaries

Wages that have been earned by employees but have not yet been paid by the employer.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjusting entries are made.