How Are the Slope of a Production Possibilities Frontier and the Opportunity

question 179

Multiple Choice

How are the slope of a production possibilities frontier and the opportunity cost of the goods related?

• A)The slope is a graphical representation of the cost of expanding production of both goods.
• B)The slope is a graphical measure of the growth rate of the economy.
• C)The slope is a graphical representation of the cost of decreasing unemployment.
• D)The slope is a graphical representation of the rate of trade-off between the goods.
• E)The slope is a graphical representation of the cost of economic growth in the economy.

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Definitions:

Unrecorded Revenue

Earnings from completed transactions or delivered goods/services that have not yet been documented in the financial accounts.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, irrespective of when the transactions actually occurred.