Which of the Following Is NOT True About an Economy's

question 20

Multiple Choice

Which of the following is NOT true about an economy's production possibility curve (PPC) ?

• A) Consumers receive equal benefits from the consumption of either good.
• B) The PPC shows the maximum amount of any two goods that can be produced from a given quantity of resources.
• C) Tradeoffs between the production levels of the two goods occur along a PPC.
• D) Inefficient use of resources can cause production to occur at a point inside the PPC.

---

Definitions:

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.

Consolidated Retained Earnings

The accumulated net income of a corporation and its subsidiaries after dividends have been paid out to shareholders.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either as a profit or a deficit.

Share Issue

A process by which a company distributes new shares to shareholders, either as part of a public offering or a private placement.