Which of the Following Is True of a Production Possibilities

question 71

Multiple Choice

Which of the following is true of a production possibilities curve?

• A) It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
• B) It reveals the ideal level of technology for a country.
• C) It assumes that the prices of the two products are equal.
• D) For a country that could produce many different goods, it shows which two goods are most important to produce.

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Definitions:

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and investments, a component of a company's cash flow statement.

Indirect Method

A technique used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Direct Method

A cash flow statement approach that involves listing all major operating cash receipts and payments to calculate net cash from operating activities.