In the Diagram in Question #7 Above

question 24

Multiple Choice

In the diagram in Question #7 above,

• A) a movement from point S to point T involves an increase in the capital/labor ratio used In the production of good A.
• B) if the PPF is plotted from the "contract curve" (or "production efficiency locus"), the Production combination of goods A and B associated with point R is on the PPF.
• C) if the PPF is plotted from the "contract curve" (or "production efficiency locus"), with Good A on the vertical axis and good B on the horizontal axis, the production Combination of goods A and B associated with the 0_B origin is at the origin of the PPF graph.
• D) if the PPF is plotted from the "contract curve" (or "production efficiency locus"),With good A on the vertical axis and good B on the horizontal axis, the production Combination of goods A and B associated with point T is further up the vertical Axis than the production combination associated with point S.

---

Definitions:

Bond Issuance

The process through which an issuer creates a financial obligation (bond) that must be repaid to investors at a later date.

Straight-Line Amortization

A method of allocating the cost of an intangible asset evenly over its useful life.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes and preparing financial statements, differing from a calendar year.

Bonds Payable

A liability account in a company's balance sheet representing the amount it owes on issued bonds that have not yet been repaid.