The Concavity or Bowed-Out Shape of the Production Possibilities Frontier

question 228

Multiple Choice

The concavity or bowed-out shape of the production possibilities frontier is the result of

• A)the law of downward-sloping demand.
• B)the law of upward-sloping demand.
• C)the principle of increasing cost.
• D)complementarity in consumption.

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Definitions:

Finance Charge

A fee representing the cost of credit or the cost of borrowing on accounts, including interest and other charges.

Finance Charge

The total cost of borrowing, including interest, fees, and any other charges associated with the extension of credit.

Sale of Receivables

The process of selling a company's accounts receivable to a third party to improve cash flow and reduce risk.

Trade Receivables

Sums due to a business from its customers for goods or services provided on credit.