The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 83

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. That the production possibilities boundaries are drawn concave to the origin reflects the

• A) unfair distribution of resources in the economy.
• B) constant opportunity cost of producing more of either good.
• C) decreasing opportunity cost of producing more of either good.
• D) increasing opportunity cost of producing more of either good.
• E) scarcity of resources in the economy.

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Definitions:

Capital Balance

The amount of funds contributed by owners or shareholders to a business, plus retained earnings and reduced by any withdrawals or distributions.

Asset Revaluation

The process of adjusting the book value of an asset to reflect its current market value.

Capital Balances

refers to the amount of money stakeholders have invested in a company, recorded in the equity section of the balance sheet.

Income

The money received, especially on a regular basis, for work or through investments.