The Bowed Out Shape of the Production Possibility Curve Illustrates

question 118

Multiple Choice

The bowed out shape of the production possibility curve illustrates:

• A) constant opportunity costs
• B) decreasing opportunity costs
• C) increasing opportunity costs
• D) the fact that different resources are equally useful in the production of different goods

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Definitions:

Long-Term Liabilities

Financial obligations of a company that are due after a year or more.

Net Income

Net income is the total earnings of a company after subtracting all expenses, taxes, and losses.

Operating Profit Test

A financial metric used to assess a company's profitability from its core operations, excluding effects of financing and taxes.

Operating Segment

A component of an enterprise that engages in business activities from which it may earn revenues and incur expenses.