If the Production Possibilities Curve Is a Straight Line

question 79

Multiple Choice

If the production possibilities curve is a straight line,

• A)opportunity costs rise as output of either commodity is expanded.
• B)resources are not equally productive in the production of both goods.
• C)opportunity costs are negative.
• D)resources can be moved from the production of one good to production of others with no loss of productivity.

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Definitions:

Capital Balances

The amounts shown in a company's capital accounts, reflecting the capital owned by its owners or shareholders.

Liquidation

The process of converting assets into cash or other assets by selling them to pay off creditors or distribute the remaining assets to shareholders.

Deficiency

A shortfall or lack in quantity or quality, potentially referring to aspects such as nutrients, finances, or resources.

Partner Capital

The amount of equity owned by each partner in a partnership, representing their portion of the total investment in the business.